ED exposed another forex trading scam and seized ₹170 crores.
The scam was operated on fake platforms named BotBro, QFX Trade Limited, and Yorker FX (YFX).
During the investigation, ED seized ₹170 crores. Of course, the amount belongs to victims who in the greed of becoming rich overnight invested in such illegal trading schemes.
What makes this case alarming is the role of social media influencers. The influencers promoted these fraudulent platforms, luring retail investors into the trap by giving them false high-return promises.
Uncovering the Scam
The mastermind behind the scam is Nawab Ali aka Lavish Chaudhary who claims to be a financial guru. He runs a fake forex trading Ponzi Scheme on the AI-driven platform named BotBro.
The scam followed a classic MLM (Multi-Level Marketing) structure, where investors were promised guaranteed monthly returns of 5% to 15% simply by investing their money.
Modus Operandi of the Scam
The scammer heavily relied on social media to promote his unrealistic and fake investment scheme. Through those videos, he lured many investors who put in their capital just to earn quick gains.
Here are the steps of how the scammer runs his scheme:
- Fake AI-Based Trading Promises: Scammer introduced an AI-based BotBro trading platform. By mentioning advanced platforms he claimed automatic forex trades, generating massive profits.
- Commission-Based Referral System: To lure investors, he added a referral system too to build a huge network of investors. He offered incentives and fixed commissions to existing investors to bring in more people. In short, he introduced a pyramid scheme in disguise.
- Hyped-Up Promotions: Influencers and so-called financial experts on YouTube and Instagram pushed the platform, claiming they had made lakhs of rupees effortlessly.
- Luxury Dreams: The fraudsters lured victims with promises of foreign trips, SUVs, and elite investor status.
With flashy offices, well-made websites, and even GST registrations (which later turned out to be fraudulent), the scam appeared legitimate to many retail traders.
But as with all Ponzi schemes, when the influx of new investors slowed down, payouts stopped, and the entire system collapsed.
How the ED Cracked Down
The scam came under notice after multiple victims filed complaints with the Himachal Pradesh Police. Finally, the ED got involved and uncovered some of the shocking data and findings.
On February 11, 2025, the ED raided multiple locations, including Delhi, Noida, Rohtak, and Shamli. During the raid, it exposed shell companies that acted as channels for laundering money.
Over 30 bank accounts were identified and frozen, preventing further financial damage.
Additionally, ₹90 lakh in cash was seized, and links to a hawala network were discovered. This indicates that a significant portion of the money was being funneled overseas.
The Role of Influencers in Fueling This Scam
One of the most disturbing aspects of this case is the role of social media influencers in misleading the public.
These influencers, many of whom have no financial background, were paid hefty amounts to promote BotBro and YFX as revolutionary trading platforms.
They created engaging videos showing how they ‘earned’ huge profits effortlessly, persuading their followers to invest.
In reality, these videos were part of a well-planned marketing campaign by the scammers.
Warning to Investors: If a financial opportunity is aggressively promoted by influencers in sponsored videos without regulatory approval, it is a major red flag.
Remember, influencers get paid for promotions and are not responsible for your losses.
Scam That Left a Big Lesson for Investors
Although in every other case uncovered by ED, cyber crime, or the FraudFree team of A Digital Blogger, we end up giving the same checklist for investors to consider before investing.
Despite this, the influence of investors and the urge to earn quick money often led many to fall into the trap.
This scam serves as yet another lesson, let’s hope it isn’t ignored.
- Verify Before You Invest: Always check if the platform is SEBI or RBI registered before putting in money.
- Be Skeptical of Guaranteed Returns: The stock market and forex trading have risks. No legal investment offers fixed monthly returns.
- Research the Business Model: If a company is paying you only for referring others, it’s a scam.
- Watch Out for Influencer Promotions: Not all influencers have your best interests in mind. Many promote scams for money.
- Act Fast if You’re a Victim: If you suspect fraud learn how to report online frauds in India and file a complaint quickly.
Conclusion
The QFX, YFX, and BotBro forex trading scam is a wake-up call for retail investors.
It exposes not just the fraudsters running these evil schemes but also the reckless role of influencers who promote them.
Investing in the financial markets requires knowledge, patience, and due diligence. The next time you see an influencer hyping up a ‘risk-free’ investment, ask yourself: Would a truly profitable strategy be sold to the public like this? The answer is simple—No.
Stay alert, do your research, and don’t fall for the next big scam. Your hard-earned money deserves better.
