Overview
- Opening arguments cast Trafigura as the victim of a substantial fraud, with company counsel saying it paid for “rubbish” and is seeking recovery of roughly $600 million.
- Trafigura says November 2022 inspections in Rotterdam found carbon steel in containers contracted as 99.8% nickel, prompting a $590 million charge and litigation launched in February 2023.
- The trader’s lawyers say only about $10 million has been recovered and the remaining metal is worth around 2% of the amounts paid.
- Gupta’s defence describes more than 500 trades valued at about $3.3 billion, funded through Citi, and claims market shocks during COVID-19 and after Russia’s 2022 invasion exposed the arrangement when the bank pressed for cargoes to be taken back.
- The five-week High Court hearing will take evidence from Gupta and former Trafigura executives, the freezing order on Gupta’s assets remains in place, and Trafigura says third-party buyers have brought claims over 10 shipments.