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IronFX Sued By Its Chinese Customers In Cyprus Court

IronFX has been embroiled in bitter feud with a group of its Chinese customers since 2014. The feud now entered a new stage after 160 Chinese clients and IBs filed complaints against the multi-licensed forex broker in District Court of Limassol, Cyprus, on 22 January 2015.

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IronFX has been embroiled in bitter feud with a group of its Chinese customers since 2014. The feud now entered a new stage after 160 Chinese clients and IBs filed complaints against the multi-licensed forex broker in District Court of Limassol, Cyprus, on 22 January 2015.

IronFX
According to an expose by Forexmagnates yesterday, the complaints alleged that "IronFX has been denying withdrawal requests to over 150 accounts which the IBs brought onboard with the firm" with total amount numbered at 1.25 million USD. Previously, the forex industry newscaster has also reported several incidents between IronFX and its Chinese customers prior to the complaints.

In 27 August 2014, Shenzhen City Finance & Life channel broadcasted investigative report on IronFX operations which said the forex broker has no clearance to do business in mainland China. However, IronFX at the time stated their operations in mainland China is legal and legitimate, then proceeded by saying that they were going to take necessary legal action against the TV station.

In 12 January 2015, clients stormed IronFX office in Shanghai, ransacked the office, physically attacked the manager, and went so far as threaten an executive with knife. Also, there was mass protest held by clients that claimed their funds were held by the broker. Responding to the complaint, IronFX commented that they have identified "a group of Abusive Traders that employ an abusive trading strategy to manipulate our Promotions. This group has been placed under investigation for breach of our trading terms and pending this investigation we have put a limitation on all Promotions-related withdrawals from this abusive trading strategy as we are entitled to do."

The successive incidents that led to the recent complaint in Cyprus court certainly marked heightened tensions between IronFX and its Chinese customers. Meanwhile, IronFX CEO Markos Kashiouris in an interview with Forexmagnates argued, "We are not doing anything different from other companies in the industry in China....Our fast growth and our dominance in recent years have naturally attracted criticism from competitions. It is not surprising that our success story and market growth challenges can trigger the interest of the industry and attract attention from various channels and third parties including media."

Established since 2010, IronFX has been licensed by a number of regulatory body, including Cyprus CySEC, UK FCA, Australian ASIC, among others, and so far has never been on the receiving end of formal warning from any of them. In addition, their business in other countries also seems to be going smoothly, with new offices opened in Dubai, Milan, and Johannesburg in 2015 alone. However, in response to the Chinese clients and IBs complaints, CySEC said that they will investigate it in accordance with relevant procedures and afterward will decide whether any measures will be taken.

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Aisha telah melanglang buana di dunia perbrokeran selama nyaris 10 tahun sebagai Copywriter. Saat ini aktif sebagai trader sekaligus penulis paruh waktu di Seputarforex, secara khusus membahas topik-topik seputar broker dan layanan trading terkini.


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