UK to Try Three ‘Finfluencers’ in Landmark Case Amid Global Clampdown on Illegal Online Promotions

Three social media personalities, known as ‘finfluencers’, are set to face trial in London on charges of unlawfully urging followers to invest in high-risk foreign exchange trading schemes.

 

The prosecutions follow a coordinated international effort by financial regulators, including authorities in the UAE, aimed at curbing illegal online investment promotions.

 

Finfluencers are social media figures who share investment insights and promote financial products to their audiences. While many operate within legal boundaries, others unlawfully advertise or sell products without proper authorisation, often luring younger users with images of wealth and success that are largely fabricated.

 

As part of the global enforcement drive, the UK’s Financial Conduct Authority (FCA) launched criminal proceedings against Charles Hunter, 29, Kayan Kalipha, 35, and Luke Desmaris, 30. Wednesday’s court session made no suggestion that any of the accused were involved in UAE-linked transactions.

 

Prosecutors allege the trio promoted Contracts For Difference (CFDs) -- highly speculative products tied to foreign exchange movements -- without the necessary regulatory approval. They each appeared at Southwark Crown Court, charged with one count of inviting others to engage in investment activity, contrary to section 21(1) of the Financial Services and Markets Act 2000. If convicted, they could face up to two years in prison and fines.

 

Separate trials are scheduled for 2027, though lawyers for Hunter, Kalipha, and Desmaris, who is representing himself, have indicated they will move to have the charges dropped. All three pleaded not guilty during their earlier appearance at Westminster Magistrates Court.

 

The operation, conducted between June 2 and 9, saw regulators from the UAE, UK, Australia, Canada, Hong Kong, and Italy coordinate efforts to tackle unauthorised financial promotions. Around the same time, the UAE launched the region’s first licensing system for finfluencers, requiring anyone producing financial content to obtain approval from the Securities and Commodities Authority.

 

In the UK, the FCA has filed over 650 takedown requests against social media content and more than 50 unauthorised websites. CFDs enable traders to speculate on price fluctuations without owning the underlying asset. The FCA has warned that roughly 80 per cent of investors lose money on such products, often due to leverage magnifying both gains and losses.

 

To limit public exposure, the FCA has imposed strict controls on the sale and marketing of CFDs and similar derivatives to retail investors.