Explore ASIC legal action, winding up Prospero Markets amid concerns, following money-laundering charges and license suspension.
Explore ASIC legal action, winding up Prospero Markets amid concerns, following money-laundering charges and license suspension.
ASIC has taken decisive legal action by applying to the Federal Court to wind up Prospero Markets Pty Ltd, a retail over-the-counter derivative issuer. This strategic move by ASIC follows an ongoing investigation triggered by the Australian Federal Police’s Operation Avarus-Nightwolf, which resulted in charges against former officers and responsible managers of Prospero Markets in October 2023. The charges were related to alleged money-laundering offenses associated with the Changjiang Currency Exchange money remitting chain.
ASIC has raised a spectrum of concerns regarding the management of Prospero’s business, pointing specifically to potential breaches of its Australian Financial Services (AFS) License conditions and obligations as an OTC derivatives issuer under the Corporations Act.
In December 2023, the suspension of Prospero Markets’ AFS license intensified regulatory scrutiny due to its failure to submit audited financial accounts. Underlining the urgency of the situation, ASIC acknowledged its understanding that Prospero holds substantial client funds and emphasized the need for their swift return to clients. In an effort to facilitate the efficient return of funds, ASIC has formally applied to the Federal Court for the appointment of Andrew Cummins, Jonathon Keenan, and Peter Krejci from BRI Ferrier as joint and several liquidators of Prospero. BRI Ferrier, having served as the administrator and liquidator for another Australian-based Retail FX and CFDs broker, USGFX, brings a wealth of experience to this critical role.
The impending resolution of this complex situation is scheduled for a hearing in the Federal Court on 20 March 2024. During this session, stakeholders will eagerly await further deliberation on the fate of Prospero Markets and the proposed mechanisms for the expeditious return of funds to its clients, marking a pivotal moment in this financial regulatory saga.
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