If You Lost Money in the Currency Rigging Scandal

Time may be running out if you lost money in the currency rigging scandal and have not registered for payment of fines. We wrote about Forex rigging earlier this year and how banks have been forced to pay billions in fines.

Five banks have agreed to a settlement of charges of rigging Forex price fixes. This investigation has been going on for a couple of years and has to do with traders meeting online in chat rooms to rig the mid-day price fixes for various Forex currency pairs.

UBS , Citigroup C -0.98%, JPMorgan Chase JPM -1.47%, Royal Bank of Scotland and HSBC have agreed to pay a total of $3.3 billion in fines to settle a foreign exchange market manipulation probe among regulators in the United States and Europe.

Regulators in the U.S. and Europe found that the banks had failed to adequately train and supervise foreign currency traders. As a result, traders were able to form groups that shared information and sought to manipulate the market.

Now is time for individuals who lost money to collect damages. According to Bloomberg there is about $2 Billion up for grabs.

Currency investors risk leaving money on the table if they don’t submit claims on a $2.1 billion pot of settlement money paid by banks accused of rigging foreign-exchange rates.

That’s the message from Battea FX Group LLC, which is competing in the business of advising clients on how to get their share of the payouts. Its seven former FX traders and executives are helping firms recover funds from class actions claiming that some of the world’s biggest banks conspired to manipulate the $5.1 trillion-a-day currency market. Fourteen banks have settled, including Bank of America Corp., Barclays Plc, Citigroup Inc., HSBC Holdings Plc and Royal Bank of Scotland Group Plc.

What you need to do if you believe you lost money due to currency rigging is hire Battea or someone similar to rerun trades in spot, forwards, options, swaps and futures markets in order to determine how much you lost due to currency rigging. This is a data intensive job because the rigging goes back as far as 12 years before it was discovered. The process begins in October 2017 and traders will be able to get in to see if they can recover money for about 6 months and then the window of opportunity will close. So, if you lost money in the currency rigging scandal find someone like Battea to search your trades and see just how much you lost and how much the banks owe you.

Forex Conspiracies

There always seems to be a Forex scam, some obvious and some more subtle. Years ago we wrote about three ways to avoid Forex scams.

Every so often there is another Forex scam in the news. The ones that hit the news are usually pyramid schemes. Someone offers to trade currency on your behalf and tells a story of great profits. He or she proclaims great profits and may even show you fantastic results, on paper. If you actually demand your money they will probably pay up. That is they will pay up early in the game as money from new investors in still coming in. If you arrive late in the game the story may be different and there may be no profits to return to you and even your original investment may be gone. Other scams may be less overt but still damaging. With these thoughts in mind here are our three ways to avoid Forex scams. They all boil down to the old Roman adage, let the buyer beware.

Being careful and thoughtful when investing your money in Forex trading is wise but there are times when the scammers are just too smart. That is when if you lost money you can at least pick it up in a settlement on the back side.