Stockal, the US equities trading platform operated by Borderless, on Wednesday issued a clarification on the alleged Rs 100 crore scam linked to Bengaluru-headquartered fintech platform Stockal Securities, saying unauthorised trading activity took place in 13 customer accounts after an unidentified third party allegedly accessed 26 accounts using valid login credentials. The company said existing large-cap US equity holdings in the affected accounts were sold and the proceeds were used to purchase thinly traded microcap stocks.
On October 15, the alleged transactions took place involving the liquidation of holdings in major US companies such as Apple, Tesla, Amazon, Alphabet and Nvidia.
Meanwhile, the matter has escalated, with affected investors approaching regulators and an FIR reportedly being registered in Bengaluru. One investor has also approached the Securities and Exchange Board of India (SEBI) and the US Securities and Exchange Commission (SEC). The preliminary estimate of losses exceeding Rs 100 crore is based on information provided by two investors, and the actual extent of losses is yet to be established.
How did the alleged Stockal scam happen?
Read full statement here :
Statement Regarding Recent Reports Concerning Stockal
Recent reports about unauthorised trading activity in certain customer accounts on Stockal, our US equities trading platform, have raised understandable questions. We want to clarify the facts & explain how we are supporting affected customers.
On October 16 (India time), October 15 during US market hours, our US brokerage & custody partner, DriveWealth, notified us of unauthorised trading activity in 13 customer accounts. Access to these accounts was restricted shortly thereafter to prevent further activity.
An unauthorised third party appears to have accessed 26 customer accounts using valid login credentials. In 13 of those accounts, existing large-cap US equity holdings were sold and the proceeds used to purchase thinly traded microcap securities. Based on our investigation to date, no funds were withdrawn.
Our investigation has found no evidence of a breach or compromise of the Borderless platform, interface, infrastructure or internal systems. We have engaged independent cybersecurity specialists to examine our systems. We believe the affected account holders may have been victims of a social engineering attack involving information exposed in another company’s data breach several weeks earlier. However, this connection remains unconfirmed & under active investigation.
Supporting affected customers is our immediate priority. Our teams have been in direct contact with them since shortly after the incident and are working closely with DriveWealth to establish the facts, review transactions & explore appropriate avenues for a fair resolution.
Our assistance is provided in good faith and does not constitute an admission of liability, wrongdoing, negligence or responsibility for the unauthorised activity. We remain committed to supporting customers while the facts & respective responsibilities are established.
As a precaution, we have introduced additional authentication & account-protection measures. Based on information reviewed to date, the identified unauthorised trading was confined to the 13 accounts described above. We have found no evidence of threats to the wider Borderless platform, other products or other customer accounts. We continue to monitor our systems as the investigation progresses.
We are cooperating with relevant authorities & regulators. We also wish to clarify that we responded substantively to media enquiries before publication, sharing the information available to us at the time. This statement reflects our current understanding and may be updated as further facts are established.
Transparency, accountability and protecting our customers’ interests remain fundamental to how we operate. We built Borderless on the conviction that customers deserve a trusted, responsible & globally connected financial platform. We remain committed to that responsibility, standing alongside our customers & communicating transparently as verified information becomes available.
How did the alleged Stockal scam happen?
According to several reports, the unauthorised transactions took place on October 15, 2026. Their existing holdings in major US companies, including Apple, Tesla, Amazon, Alphabet, Nvidia and AMD, were allegedly sold without their consent.
The proceeds were then used to purchase large quantities of Zhibao Technology shares, a thinly traded Chinese company listed in the US.
According to reports, one investor told that US stocks worth USD335,768 were sold from his account and the proceeds were used to buy 3 lakh shares of Zhibao Technology at an average price of USD1.05 per share. The stock subsequently fell nearly 60 per cent, closing at USD 0.42 on October 23.
The investor estimated his losses at around USD 4.26 crore. Another investor alleged that securities worth USD 3.1 million, which translates around Rs 29 crore were sold without authorisation.