FNG Exclusive… Further to our earlier coverage that six executives of GKFX had been arrested in Turkey for what police suspect is a $29 million fraud, FNG has spoken to several parties involved in the matter and received more clarification regarding what did (and what didn’t) happen.

First, we feel it important to note that no client money was stolen. The parties arrested are suspected of stealing about $29 million in 2020 from GKFX’s parent company, Global Kapital Group. The police action came as a direct result of GKFX’s ownership and its current management working with authorities to identify those responsible, and bring them to justice.

Despite the theft, GKFX and its parent company Global Kapital Group remain well capitalized, and operating normally.

The six people arrested included former executives and employees of GKFX in Istanbul, who had left GKFX last year. (As such, the police raid which took place after the issue of arrest warrants by the Turkish court took place not at GKFX, but where those individuals now work). While the people apprehended were identified by their initials in the Turkish press as MKY, BK, CÖ, VS, SE, and RE, we believe that “MKY” is Murat Kutay Yildirim (pictured at right), GKFX’s former Group CFO who left in March 2020, and set up his own firm (with partners) called ABK Holding. Mr. Yildirim and ABK have been trying to acquire an FCA regulated broker called Cresco Capital Markets (UK) Ltd in London, to launch a competing FX brokerage business. That deal is apparently pending FCA approval.

FNG spoke with Global Kapital Group Chairman & CEO Kasim Garipoglu, who noted:

“This is a former incident which happened in 2020 and did not even impact a single customer. It is already taken care of and surfaced up due to legal actions that we brought against these former employees. Our Group’s 2020 and 2021 (first quarter) results are at an all time high and we are growing business faster than ever.”

We will continue to follow this story as it unfolds.