The Infinox Capital Forex Scandal: A Tale of Deception and Losses

Infinox Capital, a UK-based forex and CFD broker, has been thrust into the spotlight due to a scandal involving a massive financial loss for its clients. The case, which revolves around allegations of deceptive trading practices and a failed scheme promoted by a social media influencer, has left investors out of pocket by a staggering £4 million. This article explores the details of the scandal, scrutinises the role of Infinox Capital, and examines the broader implications for the financial trading industry.

Robert Berkeley is a prominent figure in the financial industry, notably serving as the CEO of Infinox Capital, a UK-based trading brokerage. He has held this position since 2009, overseeing the company’s growth and expansion into various global markets. Infinox Capital is known for offering a wide range of trading instruments, including CFDs (contracts for difference) on forex, indices, commodities, and cryptocurrencies

Beyond Infinox, Berkeley has been involved with multiple companies over the years. He has held directorships in firms such as AK Capital Markets Limited and GO Markets (UK) Limited, among others​(

His leadership at Infinox has seen the company launch innovative products like the IX Exchange, which provides access to over 20,000 instruments

Infinox Capital: Background

Infinox Capital, founded in 2009,is a well-established player in the world of forex and CFD (Contract for Difference) trading. Headquartered in London, the company has been recognized for providing access to popular trading platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5). In addition to offering a wide range of trading instruments, such as currency pairs, indices, commodities, and stocks, Infinox is authorised and regulated by the UK’s Financial Conduct Authority (FCA), which is one of the most respected financial regulators in the world.

Despite its credentials, Infinox Capital has been linked to a major scandal that allegedly defrauded clients out of millions of pounds. At the centre of the controversy is a trading scheme promoted by Gurvin Singh, a social media influencer who used his online presence to lure novice investors into high-risk forex trading.

The Forex Scam: How It Unfolded

The core of this scandal revolves around the activities of Gurvin Singh, a young influencer who presented himself as a successful forex trader. Singh amassed a considerable following on social media platforms, where he frequently posted about his lavish lifestyle, supposedly funded by his profitable trading activities. Through a series of well-crafted marketing campaigns, Singh encouraged his followers, many of whom had little to no experience in trading, to invest in forex through Infinox Capital.

Singh’s trading scheme promised investors high returns with minimal risk—an attractive proposition for individuals seeking financial gains during a time of economic uncertainty. He guided them to trade via Infinox Capital, which acted as the broker for these transactions. However, in December 2019, the market experienced a sharp downturn, leading to significant losses for investors. In total, investors lost £4 million, sparking outrage and accusations of fraud.

Singh, who acted as an affiliate for Infinox, denied any fraudulent intent, claiming that his role was limited to marketing. Despite his denials, the fallout from the scandal has led to serious questions about Infinox’s role in the scheme. Many victims accused both Singh and Infinox of failing to disclose the risks associated with forex trading, misleading investors into believing that their funds were safe in a highly volatile market.

Infinox Capital’s Role and Response

As the broker facilitating the transactions, Infinox Capital has been placed under intense scrutiny. The company, while regulated by the FCA, operates through offshore entities in jurisdictions like the Bahamas, where regulatory oversight is less stringent compared to the UK. This offshore structure allowed Infinox to offer high-leverage trading—meaning investors could control large positions with relatively small capital outlays—which increased the potential for both significant gains and catastrophic losses. Under UK regulations, such high leverage would not have been allowed, further complicating Infinox’s defence.

In response to the allegations, Infinox has strongly denied any wrongdoing. The broker maintains that it adhered to all relevant regulations and cooperated fully with the FCA during the investigation. Infinox also refuted claims made in media coverage, particularly a BBC investigative series titled “Scam City: Money, Mayhem, and Maseratis,” which brought the scandal into the public eye. According to Infinox, the series misrepresented facts and exaggerated the company’s role in the events.

Regulatory Concerns: The FCA’s Investigation

The Financial Conduct Authority (FCA), the UK regulator responsible for overseeing financial firms like Infinox Capital, launched an investigation into the case following numerous complaints from investors. The FCA also issued warnings regarding Singh’s companies, GS3 Trades and GS3 Marketing, which were implicated in the scheme. Both companies were unauthorised by the FCA, and the warnings urged the public to avoid engaging with them.

The FCA’s involvement underscores a broader issue within the forex trading industry: the regulatory gaps between UK-based operations and offshore activities. While Infinox’s UK operations are under the watchful eye of the FCA, the company’s offshore arm operates with far more flexibility, potentially exposing investors to greater risks.

Though the FCA has not imposed any direct sanctions against Infinox, the regulator’s investigation is ongoing. This case has heightened concerns about the transparency and ethical standards of brokers that straddle multiple jurisdictions. It also raises questions about the ability of regulators to protect retail investors from the complexities and risks of the forex market, particularly when those risks are amplified by offshore entities.

The Impact on Clients: Who Were the Victims?

The victims of the Infinox Capital scandal were primarily retail investors—ordinary individuals with little to no experience in financial markets. Many of these investors were drawn to the scheme by Gurvin Singh’s promises of easy, substantial returns. Singh’s social media presence, featuring images of a luxurious lifestyle funded by trading success, added credibility to his claims in the eyes of his followers. As a result, hundreds of people, many from vulnerable financial backgrounds, invested significant sums of money in his scheme.

These investors were largely unaware of the inherent risks of forex trading. Forex markets are notoriously volatile, and while they offer opportunities for significant profit, they also come with a high risk of loss. In this case, when the market crash hit in December 2019, investors lost their entire portfolios. Many have since come forward to accuse Singh and Infinox of deceiving them about the true nature of the investments.

Some victims have pursued legal action in an attempt to recover their lost funds. However, the recovery process has been complicated by the offshore nature of Infinox’s operations and the challenges of navigating international financial regulations. The fact that Infinox worked through entities in less-regulated jurisdictions like the Bahamas has further clouded the legal efforts of victims seeking compensation.

Broader Industry Implications

The Infinox Capital scandal has brought to light several significant concerns within the forex trading industry, particularly regarding the use of offshore brokers and the role of social media influencers in financial marketing.

One of the key issues highlighted by this case is the risk of investing through brokers that operate in both well-regulated jurisdictions like the UK and less-regulated offshore havens. Infinox Capital’s ability to offer high-leverage trading through its offshore arm, despite being regulated by the FCA in the UK, demonstrates the regulatory loopholes that can be exploited by brokers. These loopholes can leave retail investors exposed to greater risks than they might realise when engaging with such brokers.

Another crucial takeaway from this scandal is the growing role of social media influencers in promoting financial products. Gurvin Singh’s use of platforms like Instagram and YouTube to attract investors is part of a larger trend where influencers with little financial expertise market complex financial instruments to their followers. Singh’s case illustrates the dangers of influencer-driven financial marketing, where the promises of quick wealth often overshadow the substantial risks involved.

Regulatory authorities like the FCA are becoming increasingly aware of the dangers posed by such promotions. The FCA has begun tightening rules surrounding financial advertising on social media platforms, recognizing that influencers can easily mislead inexperienced investors into making ill-informed decisions.

Lessons Learned: How to Protect Yourself in the Forex Market

The Infinox Capital scandal serves as a stark reminder of the risks associated with forex trading, especially for retail investors who may not fully understand the complexities of the market. The volatility of the forex market, combined with the availability of high-leverage products, means that losses can accumulate rapidly. While forex trading offers the potential for significant profits, it also carries a high risk of losing capital.

For retail investors, the most important takeaway from this case is the need for thorough due diligence before engaging with any broker or trading platform. Investors should always verify the regulatory status of a broker and ensure that they understand the risks involved in trading. Additionally, investors should be cautious of trading schemes that seem too good to be true, particularly those promoted by social media influencers.

Infinox Capital Scandal: The Conclusion

The Infinox Capital scandal has left hundreds of investors in financial ruin and raised serious questions about the integrity of forex brokers operating across multiple jurisdictions. While Infinox continues to deny any wrongdoing, the ongoing investigation by the FCA and the mounting legal actions from affected investors suggest that the full story has yet to unfold.

This case has highlighted the vulnerabilities in the financial trading system, particularly in the context of offshore operations and influencer marketing. For the industry, the scandal may lead to stricter regulatory oversight and greater accountability for brokers that operate outside of stringent regulatory frameworks.

For individual investors, the lesson is clear: always conduct thorough research, understand the risks, and avoid being swayed by the glamorous promises of social media influencers. The Infinox Capital scandal stands as a cautionary tale about what can happen when speculation and inadequate oversight collide.

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