$7 million lost in FX broker's 'simple Ponzi scheme'
Arena Capital traded as BlackfortFX until it went into liquidation in May of 2015
As of last August clients were owed $7 million, while only $728,000 was in the company's bank account
A High Court Judge hearing the case say it running a "simple Ponzi scheme":
- " 'Profits' the clients were led to believe existed were in fact fictitious. Monies disbursed to clients to maintain the facade of an active operation were paid out from deposits from other clients. Arena was operating in essence a simple Ponzi scheme"