Finance
Trafigura wins $600 million nickel fraud lawsuit against businessman Gupta
Published by Global Banking and Finance Review
Posted on January 30, 2026
1 min readLast updated: January 30, 2026
Quick Summary
Trafigura wins a $600 million lawsuit against Prateek Gupta for nickel fraud, with the High Court ruling in their favor.
Trafigura Secures $600 Million Victory in Nickel Fraud Case Against Gupta
Trafigura's Legal Victory
LONDON, Jan 30 (Reuters) - Trafigura won its London lawsuit against Indian businessman Prateek Gupta over fake nickel cargoes on Friday, with London's High Court ruling in favour of the commodities trader.
Details of the Fraudulent Scheme
Geneva-based Trafigura alleged Gupta was the mastermind of a fraudulent "Ponzi scheme" in which he and his companies agreed to provide high-quality 99.8% pure nickel but delivered low-value or even worthless materials instead.
Court's Findings and Rulings
Gupta accepted he did not deliver high-grade nickel cargoes but says Trafigura staff devised the scheme, something Trafigura's former head nickel trader Sokratis Oikonomou denied when giving evidence in November.
Judge Pushpinder Saini ruled that Trafigura was induced to enter into contracts "by false and fraudulent representations" made by Gupta and his companies.
The judge also said Trafigura's former employees, including Oikonomou, were "wholly innocent of any wrongdoing".
(Reporting by Sam Tobin; editing by William James)
Key Takeaways
- •Trafigura won a $600 million lawsuit against Prateek Gupta.
- •Gupta was accused of delivering fake nickel cargoes.
- •The High Court ruled in favor of Trafigura.
- •Gupta claimed Trafigura staff devised the scheme.
- •The court found Trafigura's employees innocent.
Frequently Asked Questions about Trafigura wins $600 million nickel fraud lawsuit against businessman Gupta
1What is a Ponzi scheme?
A Ponzi scheme is a fraudulent investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from profit earned by the operation of a legitimate business.
2What is a commodities trader?
A commodities trader is a person or entity that buys and sells physical goods like metals, oil, or agricultural products, often trading on exchanges to profit from price fluctuations.
3What is high-grade nickel?
High-grade nickel refers to nickel that has a high purity level, typically around 99.8%, making it suitable for various industrial applications, including stainless steel production.
