The story rattling trading desks: lenders linked to BlackRock’s private-credit arm say they’ve been hit by a “breathtaking” fraud worth over $500 million—and they’re pointing the finger at telecom executive Bankim Brahmbhatt. Court filings and reports allege a web of forged contracts, fake invoices, and phantom receivables that looked watertight—until verification calls made the whole structure wobble. The Wall Street Journal+2The Times of India+2
Here’s the alleged playbook, in plain English: create the illusion of steady cash flows from big-name carriers (think T-Mobile, Telstra, BICS, and more), use those “receivables” as collateral, raise hundreds of millions—then watch the money scatter across entities and jurisdictions. When lenders tried to match invoices to reality, the receipts didn’t reconcile. Lawsuits and bankruptcy filings followed. Investigations are ongoing, and the accused disputes the allegations. wirelessestimator.com+2IFA Commercial Factor+2
Why traders care: if one cornerstone deal in private credit cracks, counterparties start re-rating risk everywhere—especially in exotic receivables and structured credit. That can spill into liquidity, funding spreads, and risk appetite across both TradFi and crypto. We’re not calling systemic risk—but we are calling volatility. Keep your hedges honest and your due-diligence checklists brutal. BCR Publishing
Bottom line: The giants aren’t invincible. In a market where paper can look perfect, verification beats vibes—every time. The Times of India
#CreditRisk #MarketAlert #DueDiligence
