Since financial regulatory bodies have taken actions to further tighten forex regulations, many unlicensed brokers figure out ways to scam investors by offering misleading information. A common tactic these frauds used the most is they won't allow you to withdraw money unless you pay taxes first. However, when you paid the taxes, they will also refuse your withdrawal requests with other excuses.
Recently, BrokersView learned that Zank Capital/ZKTrade/Zank International Ltd, which is operating under two domains: ZKTrade(https://zkmt4.com/) and Zank Capital (https://www.zankcapital.com/), has been one of the above scam brokers.
Ask Victim to Pay Extra Money For Tax
A victim posted his scam experience in Zank Capital. He invested money with the company and made profits. When he wanted to withdraw funds, the broker refused his request and asked him to pay extra money to them for tax if he wanted to make a withdrawal. For that, he told the entity to deduct any broker fee and tax from his account but was denied. The broker still kept telling him to deposit extra money for tax. Here are some emails between the broker and the victim.
1. The entity wrrote that the amount of tax the victim had to pay to the local government is $26393.36.
2. After the first tax was paid, the broker would notify the bank to transfer the victim’s profits to the account he designated.
3. The victim had to extra money to the broker as well.
Offering Misleading Information
1. False foundation year
The entity showed it was established in 2005 and won some awards in 2019 and 2020 as an industry leader. However, domain check results showed the two domains(https://zkmt4.com/ and https://www.zankcapital.com/) of the company were newly created in 2020 and in 2021. How it can win awards in 2019 before its foundation? Thus, there is the highest possible level of caution for you when dealing with Zank Capital.
2. False regulatory license
The scam says to be based in the UK in its “Financial Service” but claims to provide traders with forex trading services with an ASIC License(License Number: AFSL 246943). In any case, there is a clear indication that something is not quite right as its headquarters is in the UK but its license is from Australia.
To verify the doubts, we did check whether the broker is present in the registry of The Financial Conduct Authority (FCA) in the UK, and no results relating to Zank Capital appeared there. Meanwhile, there is an investment and wealth management company named ZANK CAPITAL LTD (Zank & Co), which is licensed in Australia under the ASIC License Number AFSL 246943, but they have nothing in common with the fraud we are currently talking. Moreover, the ASIC-licensed reliable broker doesn’t provide currency investment service. That is to say: Zank Capital is currently not regulated or not overseen by any financial regulator.
Based on the information, we can conclude that Zank Capital is a scam.
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