Stockal Investors Allege Over ₹100 Crore Losses In Unauthorised US Stock Trades
· Free Press Journal
Around 30 investors have alleged losses exceeding Rs100 crore after unauthorised trades were executed in their US stock portfolios through fintech platform Stockal.
Stockal's parent company, Borderless, said an unauthorised third party accessed 26 customer accounts using valid login credentials. Of these, 13 accounts experienced unauthorised trading.
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The transactions occurred during US market hours on Oct 15.
Existing holdings in companies including Apple, Nvidia, Amazon, Tesla, Alphabet and Advanced Micro Devices (AMD) were sold, with proceeds used to purchase thinly traded shares of US-listed Chinese company Zhibao Technology Inc (NASDAQ: ZBAO).
Pune Student Loses Rs 83.8 Lakh In Fake Foreign Stock Market Investment ScamIn a LinkedIn statement on Nov 4, Borderless said its US brokerage and custody partner, DriveWealth, alerted it to suspicious transactions on Oct 16, India time.
"Based on our investigation to date, no funds were withdrawn," the company said.
Borderless restricted access to affected accounts and said investigators found no evidence that its platform, infrastructure or internal systems had been compromised.
Over ₹100 crore in blue-chip US stocks liquidated without consent. A severe wake up call on intermediary risk for Indian investors.
— Naresh Nambisan I ValuationMantra I SEBI RA (@nareshbahrain) November 3, 2026
Nearly 30 Indian retail investors have reportedly suffered losses exceeding ₹100 cr in an alleged unauthorised trading incident involving Stockal…
The company is examining whether a social engineering attack involving information exposed in another company's earlier data breach enabled the access.
However, it stressed that this possible connection remains unconfirmed.
Independent cybersecurity specialists have been engaged to investigate the incident.
Borderless also introduced additional authentication and account-protection measures.
Stockal And DriveWealth Dispute Responsibility For Investor Losses
Borderless said it was working with DriveWealth to review transactions and explore possible resolutions for affected customers.
It maintained that assistance offered to investors should not be interpreted as an admission of liability or wrongdoing.
Stockal has suggested that compromised email accounts, phishing or similar social engineering methods may have exposed customer login credentials.
DriveWealth, however, disputed responsibility in an Oct 30 letter to an affected investor.
The brokerage said unauthorised access occurred through the investor's Stockal interface and attributed any associated security lapses to the Indian platform.
The conflicting accounts leave responsibility for the disputed transactions unresolved as investigations continue.