CoFTRA: Robot Trading Dominated Illegal Commodity Futures Trading in 2021-2022

TEMPO.CO, Jakarta - The Commodity Futures Trading Supervisory Agency (CoFTRA) revealed that robot trading was the most practiced illegal activity from 2021 to 2022. CoFTRA acting chief Didid Noordiatmoko said that many robot trading do not meet a number of criteria as commodity futures trading and are not registered with CoFTRA.

"Recent cases of problematic robot trading (Binomo, Oxtrade, and others), they never got licenses from CoFTRA. They only got a direct selling business license from the Trade Ministry," Didid said in a press conference in Jakarta on Wednesday, January 4.

The practices of illegal robot trading, he said, include those that do not use third parties, where they transact directly with brokers or traders. These fraudsters, Didid said, mostly use a crowdfunding mechanism with one person acting as the fund collector—promising that the trading robot system will definitely make a profit.

"The words 'profits guaranteed' are a mistake. Let me say this again, there is no investment that guarantees profits," Didid said.

Previously, the Financial Transaction Reports and Analysis Center (PPATK) also said that illegal investment transactions through robot trading recorded from January to December last year reached Rp35 trillion.

"PPATK conducted an analysis and examination regarding robot trading that will surface in 2022, due to the issue of crazy riches and other criminal acts," PPATK chairman Ivan Yustiavandana said during the end Annual Final Reflection event on December 28 last year.

He said that scammers usually lure victims with luxury goods. "They use many different types of tricks. But the ones that are most prominent now include the use of fintech instruments, crypto," he said.

Riani Sanusi Putri

Click here to get the latest news updates from Tempo on Google News