Commodity Trader Trafigura Faces $577 Million Loss on Nickel 'Fraud'

Trafigura, a major energy and metals trader, discovered a systemic fraud involving missing nickel in containers, leading to a $577 million impairment. The fraud was uncovered after a two-month investigation, revealing worthless metal instead of nickel. This incident raises questions about security standards in the metals trading industry, which has seen similar fraud cases. Trafigura is reviewing its trading processes and relationships, while legal actions are underway. The company hopes to recover some losses, highlighting the need for improved verification and security measures.

What were some of the previous incidents of fraud reported in the metals trading industry?

What implications does the fraud have for Trafigura's processes in verifying trades?