Illegal Xinhu Futures Defrauded Confused Forex Investor

Complained by: Mr. Zhao

Exposed broker: Xinhu Futures

Cause of complaint: the investor cant withdraw

On January 10th, 2020, Mr. Zhao suddenly received a very disturbing message from the forex broker Xinhu Futures.

The notice Mr. Zhao received from Xinhus customer service

It all started with a webcast studio named New Times Financial Hub. According to Mr. Zhao, he had been learning live streaming lessons in the online studio since last December and found it quite helpful.

The webcast of New Times Financial Hub

“The customer service approached me during the webcast lesson and recommended me to invest at their platform called Xinhu Futures.” Mr. Zhao recalled. “After I went through the materials provided by the customer service, I thought the broker was reliable and decided to sign up.”

Mr. Zhaos conversation with the customer service

But the whole process of signing up had been quite a confusion for Mr. Zhao. “The broker that customer service first recommended to me was called ‘Xinhu Futures’, but the company on the asset safety agreement that I signed before depositing was ‘Shanghai Yajia Business Consultation Ltd’, and later my money was transferred to ‘Guangzhou Ranyu Business and Trading Ltd’.” The deposit involved several companies, but the customer service explained that these companies are business partners and Mr.Zhao need not worry about it.

Mr. Zhaos transaction record

A few days later, Mr. Zhao suddenly realized that something was wrong: the trading interface provided by the customer service was not “Xinhu Futures” at all! Recalling that neither the signatory of the service agreement nor recipient of his transaction was “Xinhu Futures”, Mr. Zhao felt even more worried.

Mr. Zhaos trading interface

But before Mr. Zhao could figure out what happened, his heart sank as he saw a notice on January 10th.. “They approved my withdrawal that morning, but later told me it couldn‘t be done in the afternoon.” Mr. Zhao sounded frustrated and skeptical. Knowing that Mr. Zhao wanted to withdraw, the customer service tried to block his attempt by sending him a notice about the broker’s “withdrawal channel maintenance”. However, the notice,casually composed without official any signatory, didnt appear very convincing.

Mr. Zhaos conversation with the customer service

“ I‘ve been waiting for over a month and wasn’t able to reach the customer service who simply ignored my messages. I still have RMB 37,500 in my trading account, but the system kept on blocking my withdrawal for ‘low account balance’.” Mr. Zhao felt disappointed and frustrated. “I must have been defrauded.” He said.

System showed Mr. Zhaos account balance was too low.

So was the broker that defrauded Mr. Zhao really named “Xinhu Futures”？ We checked Xinhu Futures‘ official site and found a clarification which listed a dozen of illegal organizations and individuals that conduct futures brokerage in the name of XinHu Futures. By comparing the sign-up portal from Xinhu Futures’ official site and the portal provided by the customer service of “New Times Financial Hub”, we found that although both sites have a client information collecting page, but the latter didnt have any additional verification information such as the company logo or copy right information of the website. In other words, the customer service had offered a fraudulent sign-up portal.

Sign-up portal of Xinhu Futures from its website

Sign-up portal from the customer service of the webcast

WikiFX reminds investors to carefully check the profile and compliance of a broker before depositing. If you have any doubt about any broker, you may contact us at wikifx@wikifx.com for more information to improve your asset safety during investment.