Illegal Operation, Countless Victims: XTrade’s Philippine Scam Base Dismantled, 63 Arrested

Recently, a major online investment scam operation in the Philippines has been linked to the controversial trading platform XTrade.

On May 20, 2026, the Philippine National Police Anti-Cybercrime Group (PNP-ACG) raided a large-scale investment fraud hub in Pasay City, arresting 63 suspects, including a 55-year-old foreign national believed to be the mastermind. According to investigators, victims were lured through online advertisements and persuaded by so-called “investment advisers” and “trading assistants” to deposit funds into XTrade.

Authorities found that the syndicate operated with dedicated marketing teams, telemarketers, and retention agents who used scripted sales tactics, fake identities, and fabricated celebrity endorsements to convince victims to invest. Withdrawals were allegedly delayed or restricted, creating the illusion of legitimate trading activity.

Investors Report Withdrawal Blocks and Heavy Losses

An investor claims XTrade blocked access to $10,000 in deposits and $30,000 in trading profits by repeatedly applying trading bonuses.

The trader opened an "execution-only" account but says a representative gave direct trading advice and pushed for more deposits.

The dispute began in October 2025. After a withdrawal request, XTrade allegedly told the investor to cancel it. A previously removed bonus was then reactivated, locking all funds again.

XTrade’s compliance team reportedly acknowledged an outstanding balance of $13,115 via email on March 5th this year,. However, after months of back‑and‑forth, only $3,115 was refunded. The remaining $10,000 is still unresolved.

The trader also claims XTrade closed the account while the dispute was active, making recovery even harder.

A Brazilian trader reported that account managers deliberately set up bad trades and then demanded a $20,000 "emergency deposit" to "protect the capital." When the trader refused to keep funding the account, their entire balance was wiped out.

Nearly a Decade of Alleged Operations

Investigators revealed that the scam operation had allegedly been active for nearly a decade, repeatedly changing company names to avoid detection. The Philippine Securities and Exchange Commission (SEC) confirmed that neither XTrade nor its operator, KLSJ Call Center Services, was registered to solicit investments in the country.

In fact, the Philippine SEC had already warned as early as 2017 that XTrade was not registered to offer or sell securities in the Philippines.

Regulatory Red Flags Across Multiple Jurisdictions

The broker has also attracted regulatory scrutiny worldwide. Previously, the Securities Commission Malaysia placed XTrade on its Investor Alert List in both 2021 for conducting unauthorized capital market activities.

Questions have also emerged regarding XTrade's regulatory claims. The broker has promoted licenses allegedly issued by the Belize FSC and South Africa's FSCA, yet independent checks indicate that relevant Belize licenses have been canceled, while the South African license details do not match the information advertised by XTrade.

Additionally, XTrade's Australian license was formally revoked on April 26, 2024. The company's appeal to the Administrative Appeals Tribunal was denied, leaving the cancellation final.

BrokersView Reminds You

With multiple regulatory warnings, licensing concerns, and growing investor complaints, XTrade appears to operate without credible regulatory oversight. Investors should exercise extreme caution, as funds deposited with unregulated platforms may have little or no legal protection in the event of disputes or losses.

Before investing with any broker, investors are advised to independently verify regulatory licenses, remain skeptical of aggressive sales tactics and guaranteed-return promises, and avoid platforms that create obstacles when processing withdrawals.

If you suspect you have encountered a fraudulent platform or are facing withdrawal obstacles, please preserve all chat logs and trading screenshots. File complaints with authorities. Or you can promptly submit a complaint to BrokersView, and we will assist you in reporting the situation to the relevant regulatory authorities.