Unique: Australia police raid ASIC licensed CFDs dealer Prospero Markets, accounts frozen

FNG Unique… FNG has realized that the Australian Federal Police (AFP) has raided the places of work of Melbourne based mostly, ASIC licensed Retail FX and CFDs dealer Prospero Markets, as a part of a wider motion taken by the AFP in opposition to a China based mostly cash laundering ring.

Prospero Markets has had all its financial institution accounts frozen, and has halted all shopper exercise for the reason that AFP raid on the finish of October. As a part of the raid the only director of Prospero Markets’ final holding firm CJ Prime Monetary, Ding Wang, was arrested by the AFP alongside various different people related to the corporate.

Prospero Markets is an ASIC licensed dealer which providers primarily Chinese language talking purchasers, each in Australia and throughout the Far East.

Prospero Markets raid background

On the finish of final month, the AFP issued a press launch that seven members of an alleged Chinese language organised crime syndicate have been arrested, and have been accused of secretly working a outstanding, multi-billion-dollar cash remitting chain in Australia in what the AFP termed the “most complicated AFP-led cash laundering investigation” within the nation’s historical past.

The arrests surrounded a nationwide chain of foreign money trade retailers known as Changjiang Forex Trade, which the AFP alleges is being secretly run by the Lengthy River cash laundering syndicate out of China. The syndicate and Changjiang Forex Trade are accused of laundering $229 million within the proceeds of crime over the previous three years.

4 Chinese language nationals and three Australian residents have been charged for his or her alleged involvement within the cash laundering syndicate, and have already appeared in Melbourne Magistrates’ Courtroom, though the AFP didn’t launch their names.

Prospero Markets director arrested

Nonetheless Australian information website The Australian is reporting that a type of arrested is Ding Wang, who’s listed as the only director of CJ Prime Monetary, the final word holding firm of ASIC licensed dealer Prospero Markets, and Prospero Markets’ presumed controlling shareholder.

And it seems that Prospero Markets’ places of work have been amongst these places which have been raided by the AFP in late October. Prospero Markets’ financial institution accounts have been additionally frozen.

Following the AFP raid, FNG has realized that Prospero Markets purchasers have been despatched an e mail stating:

“We remorse to tell you that Prospero Markets’ financial institution accounts together with however not restricted to its Shopper Cash financial institution accounts have been frozen by the banks.

“We’re within the technique of contacting the related banks to have these accounts unfrozen.

“Consequently, we’ve got been unable to course of your deposits and withdrawals, in addition to different required dealings in these accounts, since October 25.

“We’re working to rectify this as shortly as doable.’’

An extra message despatched to Prospero purchasers famous:

“We hereby notify you of our determination to terminate the T&Cs (phrases and situations) by 5pm AEDT on 12 November, 2023.

“Moreover our capacity to cite pricing for some merchandise has been terminated, and we’re very prone to lose the flexibility to cite costs for remaining merchandise at any time with out discover.

“Consequently, an occasion of default has occurred beneath the T&Cs and we’re of the view that extra occasions of default could happen quickly.’’

Whereas the AFP didn’t particularly point out Prospero Markets in its aforementioned press launch or formally hyperlink the Changjiang Forex Trade to Prospero Markets, The Australian is reporting that various these arrested (other than Ding Wang) even have hyperlinks to Prospero Markets. The Australian additionally reported {that a} supply knowledgeable it that it’s “widespread data” within the Chinese language neighborhood in Australia that Changjiang Forex Trade and Prospero have been run by the identical folks.

The ASIC web site nonetheless reveals Prospero Markets Pty Ltd as being duly licensed in Australia.

Within the meantime, whereas Prospero Markets’ web site at prosperomarkets.com stays up, its ‘Open Account’ operate reveals the next message (as per the graphic at high):

We remorse to tell you that as a result of circumstances past our management, Prospero Markets is briefly unable to just accept any new account opening requests. We’re deeply sorry for the inconvenience this may increasingly trigger you.

We remorse to tell you that as a result of circumstances out of our management Prospero Markets should not capable of settle for any new account opening requests. We apologize for any inconvenience this may increasingly have brought about.

Prospero Securities Staff

Prospero Markets

We’ll proceed to observe this story because it develops.