Broker News

Australian Court Orders Liquidation of Prospero Markets

The Australian Federal Court has ordered Prospero Markets, a CFDs and forex broker, to cease operations. A liquidator will now manage the return of client funds by command of the Australian Securities and Investments Commission (ASIC). 

On Thursday, the closure was enforced for reasons deemed “fair and proper.” BRI Ferrier’s Andrew Cummins, Jonathon Keenan, and Peter Krejci serve as the appointed liquidators for the brokerage. ASIC revealed extensive concerns about how Prospero managed its affairs, spotlighting possible violations of its license terms and duties as an over-the-counter derivatives issuer.

Broker Faces Closure

Since 2012, Prospero Markets has offered leverage trading in CFDs, including forex, metals, commodities, indices, and shares, to both retail and institutional clients. With services provided in both English and Chinese, it catered significantly to Chinese-speaking clientele, though specific figures are undisclosed. 

Last year, ASIC paused Prospero’s Australian Financial Services (AFS) license for not filing financial reports and audits on time. This suspension lasts until September 26, 2024. Following charges against its former officers and managers related to a money laundering scheme with Changjiang Currency Exchange in October 2023, which allegedly laundered about $229 million over three years, ASIC started probing Prospero.

ASIC stated it had been contacted by clients worried about getting their funds back. The regulator explained that liquidation was the best strategy for swiftly returning client funds.

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