Indian police recently uncovered a major foreign exchange trading fraud case. A man named Mit Khokhar has been arrested for allegedly using MetaTrader 5 (MT5), a trading software explicitly banned by the Reserve Bank of India, to build an illegal trading network to lure investors.
The case was initially considered a typical online fraud, but as the investigation progressed, police discovered that Khokhar used over a hundred fake identities and accounts to commit the crimes, revealing a scale far larger than expected.
According to the investigation, Khokhar opened numerous accounts using the names of multiple individuals. The victims are concentrated in the Surat and Ahmedabad areas, mostly from the business community. This has raised concerns that the actual number of victims may be higher than currently known. Police are now verifying the authenticity of the involved accounts and attempting to contact every individual whose identity was stolen.
A key element of the investigation is Khokhar’s illegal use of the MT5 platform, which is banned by the Reserve Bank of India (RBI). Police emphasized that while international forex trading is legal, Khokhar’s operations were entirely illicit. Under the guise of “algorithmic trading” (a trading model reliant on automated software), he used MT5 to fabricate trading records, falsely promising victims “guaranteed” returns of 12% to 14%. In reality, no actual trading ever took place.
The fraud ring deliberately avoided leaving a paper trail by accepting only cash investments and refusing any online transfers or check payments. To create the illusion of financial activity, they showed investors forged transaction screenshots.
The most deceptive tactic was the “read-only” account access. Although Khokhar opened MT5 accounts for victims and provided login details, the victims could only view fake trading activity and profit data. They had no ability to execute trades or withdraw funds. All capital flow was controlled by the criminal group. Even when victims requested withdrawals, the funds could only be processed in cash through Khokhar.
Some victims have now formally filed police reports. Given the vast network and the large number of fraudulent accounts, police expect more victims to come forward as the investigation deepens. Authorities have launched a full-scale investigation to dismantle this criminal enterprise masquerading as an “online forex trading” system.
This case highlights the significant risks hidden behind promises of high-return investments. Consumers should conduct transactions through legitimate channels and choose platforms with transparent financial mechanisms. Cashback Island is committed to providing a secure consumer experience and advises users to carefully evaluate a platform’s compliance and prioritize services certified by regulatory bodies before making any investments.
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