The London Metal Exchange found bags of stones at one of its warehouses instead of the nickel they were supposed to contain.
The discovery comes weeks after commodities trader Trafigura Group said
it was a victim of a systematic fraud that could cost it as much as
$577M.
- Trafigura said it thought it was buying containers full of nickel, but what it received did not contain the metal.
- Trafigura accused metals trader Prateek Gupta of being behind the alleged fraud and has started legal proceedings.
- LME said it found nine cases of missing nickel amounting to about 54 tons, worth about $1.3M.
- The LME has ordered all its licensed warehouse operators to inspect the nickel in storage to check for irregularities.
