Niky Kundnani and Gope Kundnani’s NSFX Scam Allegations Fact-checked (2024)
On January 6, 2023, California-based FDCTech, Inc. announced that it had purchased the majority of the shares in the broker NSFX, which is regulated by the MFSA. Specifically, it would have bought 50.1% of the broker—that is, its sole shareholder, New Star Capital Trading Ltd., a company established in the British Virgin Islands. There is no identification of the 49.9% that were not obtained through the press release. It was the Alchemy Group of Indian Gope Kundnani, who directs FDCTech. This is the story left unsaid.
The Alchemy Group, owned by Gope Kundnani, and FDCTech, previously Forex Development Corp., are related businesses. Since September 2022, the aforementioned has served as a director on the board of FDCTech. It has been revealed that Niky Kundnani, who was a director of the Alchemy Group until recently, has also served as a director for FDCTech. We are unable to determine why the FTCTech press release omits to mention that connected firms purchased 100% of NSFX, or its owner, New Star Capital Trading Ltd.
Thus, by leaving out important details, the press statement from FDCTech, which is subject to SEC regulation, is deceptive. It’s possible that the Maltese regulator MFSA was informed of FDCTech and Alchemy Group’s affiliation.
What was the rationale behind Alchemy Group’s beneficial owner becoming a director of FDCTech just weeks before the NSFX deal was revealed? Was there a monetary commitment or business alliance involved? The combined acquisition of NSFX is undoubtedly a smart move.
Additionally, the press statement omits to name NSFX’s beneficial owners. Who did the shares get them from?
Several offshore brokers run by Alchemy Group take on clients in EEA countries without the necessary permission. In July 2022, the Spanish regulatory body CNVM issued a warning over this.
MFSA (Malta Financial Services Authority)
Malta’s financial regulator is the Malta Financial Services Authority (MFSA). The Malta Stock Exchange, the Malta Financial Services Center, and the Central Bank of Malta were merged into the MFSA in 2002, marking the organisation’s founding. It oversees the securities markets, banking, investing, insurance, and financial sectors in Malta.
The MFSA is tasked with safeguarding consumer interests and advancing market efficiency and openness by regulating, supervising, and monitoring Malta’s financial industry. It has the authority to look into any unfair and damaging financial industry practices, evaluate business practices, and advise the government on policy.
NSFX
A group of financial industry specialists established NSFX Ltd. with the specific goal of developing a regulated online trading brokerage that would offer investment services to all kinds of traders and institutions worldwide. The company’s continuous demands for traders were carefully considered when building its IT infrastructure. NSFX Ltd. strives to create one of the greatest trading experiences available on the market right now by fusing its strong relationships with liquidity providers and the banking system.
In addition to providing top-notch technology solutions, NSFX Ltd. is dedicated to giving a polished and open trading environment. According to NSFX Ltd., this is made possible by upholding the highest standards for the following three pillars: innovative trading platforms, innovative trading tools, and excellent trading conditions.
NSFX Ltd. thinks that establishing three pillars is the best way to address this issue. The foundation of the Three Pillar Concept is the notion that offering cutting-edge trading platforms, cutting-edge trading tools, and excellent trading conditions leads to educated trading.
What is Forex Trading?
The words foreign [currency] and exchange are combined to form the acronym forex (FX). The process of converting one currency into another for a variety of purposes—usually trade, tourism, or commerce—is known as foreign exchange. The Bank for International Settlements, a global bank that serves national central banks, stated in a 2022 triennial report that the daily global volume of FX trading hit $7.5 trillion in 2022.
How is the volatility of Forex Trading harmful?
With no influence over geopolitical and macroeconomic events, one might easily lose a lot of money in the extremely volatile foreign exchange market. If something goes wrong with a certain stock, investors have two options: they can seek regulators or put pressure on management to make the necessary changes. There is nowhere for forex dealers to go. For example, forex dealers holding Icelandic krona could only look on while Iceland went bankrupt.
It’s challenging to consistently keep an eye on prices and volatility in the 24/7 markets. The ideal strategy is to trade forex methodically using a well-planned strategy and to maintain stringent stop losses for every trade.
