AximTrade is currently under intense scrutiny due to recent scam allegations. A series of cases originating from the Philippines have thrust the platform into the spotlight, with claims of traders being unable to withdraw their funds or receive approved withdrawals. This development has caused concern within the international trading community, leading many to question the legitimacy and operations of AximTrade.
AximTrade and Hidden Operations Offshore
Two partners own AximTrade, an unlicensed offshore broker that operates through a number of companies, including the financial institution First Global Transit Inc. and the payment service AloGateway. According to resources, First Global Transit Inc. is operating from Makati area in Manila with over 200 employees. Most of the staff are specialized financial analysts or customer support agents who are mainly running the operation of AximTrade. Additionally, AloGateway is operating as a financial cover for transactions and payments.
In 2022, the AloGateway’s license has been suspended in China due to suspicious transactions and fraudulent transfers. Afterward, AloGateway moved to operate under another name in Asia, AximPay. However, after MAS rejected the new payment gateway, it was unable to obtain a financial license to operate in Singapore.
After months of changing routes, the broker company failed to manage a sustainable payment process, which resulted in a massive issue with client withdrawals and wire transfers for vendors.
The so many faces of AximTrade and shell companies
AximTrade claims it is licensed in New Zealand under the name of Huntingon Service Limited, according to the official website. After an investigation by our reporter in New Zealand, we discovered the company is IBC registered in New Zealand and is authorized as a Financial Service Provider (FSP) with license no. FSP6317469. Address: 27 Tainui Street, Raumati Beach, Paraparaumu, 5032, New Zealand. Check for more details about the license listing. Furthermore, there have been details on the assigned director, Russell Warren Lousich. After looking for the name, it turned out to be a consultant who used to work in Hong Kong. This name did raise several questions, including the relationship of the shell company with the broker and its operation. A resource provided more information on Russell Warren Lousich who turned out to be using his name for the license at a high cost of $70k per month.
The Darkside of First Global Transit Inc.
Since the very beginning, the IT company has been facing massive operational issues. The reviews show how the company is operating in harsh conditions and is not able to sustain itself effectively. You can find several reviews on different websites, including the reviews on the Indeed website.
By investigating the background of First Global Transit Inc. (Registration: SEC number CS201423254 – Address: 4/F, Pac Atlantic Centre, 2917 Finlandia Street, Barangay San Isidro, Makati City 1234 Metro Manila) we were able to see the connection with AximTrade operations as well as AximTrade entities overseas in Singapore, Japan, Thailand. Most of the AximTrade operations and offices are registered under the name AxMarketing Private Ltd to avoid legal issues with local authorities. [Download the License]
The connection between First Global Transit Inc. and AloGateway is so clear if you check LinkedIn and track down how the majority of employees list their job roles under both companies or even move to AximTrade. Below is the cover image of the social media account of First Global Transit, which shows a group gathering and the AloGetway logo in the background.
AloGetway The Unofficial Payment Solution
AloGateway was established in 2013 as an API-linked payment gateway for b2b businesses to collect payments via debit/credit cards and net banking. The platform has been mainly operating in China with forex trading platforms since it offers China Union Pay (CUP). Additionally, AloGateway provides features such as recurring billing, risk and fraud management systems, mobile payments, and PCI-DSS compliance. In the past few years, the company has been presented at most of the top forex expos and events in Asia, Dubai, and Cyprus.
According to secret sources, Chinese authorities have suspended AloGetway since 2022 due to violations and suspicious activity. Therefore, the marketing and branding for the payment solution are currently inactive. Based on research, AloGateway has been operating under the radar and outsourcing payments to new channels, leading to massive operations delays and the loss of B2B customers.
The Disturbing Cases
In recent reports, four new cases from several countries have surfaced where traders claim that they have been scammed by AximTrade. The common issues identified involve an inability to access funds and delays in withdrawal requests. These delays have been reviewed, and some of the clients have posted screenshots of the cases on LinkedIn and Facebook.
Over the last month, unfortunate traders have reported that they have been unable to withdraw their funds from AximTrade. One of the cases has reported his issue to MetaQuotes, asking for help. In addition, several cases have been reported to authorities.
Three other traders from Malaysia have reported similar cases, reporting approved withdrawal requests but finding their bank accounts empty. The consistency of these claims paints a worrying picture of potentially fraudulent activities at AximTrade.
AximTrade Scam Started with Massive withdrawal Delays
AximTrade has been a hot topic on social media platforms, not only in the Philippines but also in countries like Malaysia, Vietnam, Thailand, Laos, and Indonesia. The platform had promised efficient performance with their withdrawal, which didn’t occur. In June and July, pending withdrawals were reported from hundreds of IBs and clients.
The AximTrade withdrawal issues raise red flags as a potential threat to the trading industry. The broker seems to be using forex trading funds to mask its overseas activities, easily luring innocent people with limited knowledge of forex trading. The scam gained traction when the Asia Trading News team began receiving complaints from traders across the globe. Upon checking social media, many unsuspecting traders were found praising AximTrade, unaware of the impending storm.
The Asia Trading News team took the initiative to raise public awareness about these activities. The issue quickly gained momentum on social media, reaching Kelvin Tang, the CEO of AximTrade, who never provided a legitimate response to clients. Daily complaints received by the Asia Trading News team have been proliferating.