Thailand’s Department of Special Investigations (DSI) has arrested a senior executive linked to alleged foreign exchange investment fraud, as the cross-agency investigation expands into the country’s political sphere.
An MP is among 22 people now being questioned as investigators examine the scheme’s alleged political links after a court refused to issue arrest warrants.
The latest development comes after raids on 24 websites as part of the “Stop Money Laundering” operation, which targeted a network of trading platforms, brokers and payment service providers.
Arrest of a senior executive
The CEO faces charges including general fraud, money laundering, and operating unlicensed securities and futures contracts, according to the British newspaper The Guardian. Bangkok Post.
Thai authorities claim that the company attracted investors by promising returns of between 20% and 30% within seven days. Investigators also allege that it delayed order execution and offered prices that differed from those available in the broader market.
Customers trying to withdraw funds were allegedly asked to pay advance taxes or additional fees. Losing clients were reportedly encouraged to become introducing brokers and recruit new participants in exchange for commissions and bonuses.
The company cites external filings
In a separate statement to Facebook addressing its regulatory status, the company indicated: A You have a brokerage licenseMSB registrations in the US and Canada, and FSP registration in New Zealand and membership Finance Committee.
However, MSB and FSP registrations do not in themselves permit a company to offer retail foreign exchange, securities or derivatives trading. The statement did not address the arrest or the specific allegations made by Thai investigators.
Political connections under the microscope
Finance poles I mentioned previously Investigators revealed 14 transfers with a total value of 28 million baht to accounts linked to the politician.
The authorities stressed that transfers alone do not constitute evidence of violations. The MP denied his involvement in the alleged scheme and said that the money was linked to gold trading activity that ended several years ago.
The Directorate of Intelligence and Political Security summoned him for questioning, but did not announce any charges.
The situation indicates that Thai enforcement It expands beyond merchant locations to include the people, payment channels, and local infrastructure that supports their operations.
Finance Magnates contacted the suspended executive and representatives of companies associated with the investigation but had not received a response at the time of publication.
This article was written by Tanya Chipkova at www.financemagnates.com.
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