Last August, in an investigative report, Chinese web TV station, waihuiTV, suggested certain questionable operations at the Chinese affiliates of international broker, IronFX Global Ltd. Following the report, disgruntled Chinese traders came forward and voicing similar claims, decided it was time to take action.
In reaction to the incriminatory media report, the company's Chinese customers burst into IronFX's offices in Shanghai and attempted to violently attack the company's staff. One client threatened to kill an executive with a knife if a withdrawal was not approved by the following day. According to a later report, the money was returned.
After this confrontation, additional protesters who have been claiming that their funds were also being held captive by the broker, stormed and vandalized the office, even physically attacking the manager.
As first reported by Forex Magnates, IronFX has rejected all the complaints as "?clearly defamatory" and say they "?have received no complaints or other formal notification from CySEC or any other of our seven regulatory authorities about withdrawal delays."
160 Complaints Filed
The clash between IronFX and the company's Chinese customers and introducing brokers (IBs) has now come to a head with a legal case brought against the broker.
According to the allegations, IronFX has been denying withdrawal requests to over 150 accounts which the IBs brought onboard with the firm. The total amount of client funds mentioned in the claim is close to $1.25 million. As of January 22nd, close to 160 complaints had been filed against IronFX with the District Court of Limassol.
Global is owned and operated directly by IronFX. Records indicate that the accounting department of IronFX Global Ltd. controls the domain of Global.