Indian police have recently cracked a large-scale forex trading fraud case. A man named Mit Khokhar was arrested for allegedly using MetaTrader 5 (MT5) which is a trading software explicitly banned by India’s central bank to build an illegal trading network and defraud investors.
Initially treated as a routine cyber fraud case, the investigation then revealed that Khokhar operated through over hundred fake identities and accounts, with the scam’s scale far exceeding expectations.
Investigations disclosed that Khokhar opened numerous accounts under stolen identities, with victims concentrated in Surat and Ahmedabad, primarily from the business community. This raises concerns that the actual number of victims may exceed current estimates. Police are now thoroughly verifying all involved accounts and attempting to contact each individual whose identity was misused.
The investigation hinges on Khokhar’s illegal use of the MT5 platform, which was explicitly prohibited by the Reserve Bank of India (RBI). Police stress that while international forex trading itself is legal, his operations were entirely unlawful. Under the guise of “algorithmic trading” (a trading model relying on automated software), Khokhar fabricated transaction records via MT5, falsely promising victims “guaranteed” returns as high as 12% to 14%. In reality, no actual trading ever occurred.
The fraud ring deliberately avoided leaving evidence by accepting only cash investments, rejecting all online transfers or check payments. To create the illusion of fund movement, they showed investors doctored transfer screenshots.
The most deceptive tactic involved so-called “read-only” account access. While Khokhar set up MT5 accounts for victims and provided login credentials, victims could only view fabricated trading activity and profit data without any ability to execute trades or withdraw funds. The criminal group maintained full control over all fund flows. Even when victims requested withdrawals, Khokhar processed them exclusively in cash.
Multiple victims have already filed formal complaints. Given the scam’s extensive network and numerous fake accounts, police anticipate more reports as investigations progress. Authorities have launched a comprehensive probe to dismantle this criminal operation masquerading as “online forex trading.”
This case highlights the significant risks hidden behind promises of high returns. Consumers should trade only through legal channels and choose platforms with transparent fund flow mechanisms. Cashback Island is committed to providing a secure user experience and advises users to carefully assess a platform’s compliance before engaging in any investment, prioritizing providers certified by regulatory authorities.
Cashback Island reveals multiple fraud cases each month. Traders can check the “Cashback Island Scam Alert” in real time to avoid falling victim to emerging financial scams.
