Some of the best stories on Finance Magnates over the past week involved new repercussions of the American criminal investigation of insider trading using CFDs. Other top stories included developments related to international brokers, Saxo Bank and IronFX, as well as a major fracture in the Bitcoin online ecosystem.
Bitcoin XT Fork
Last Sunday, we reported on the sad state of affairs in the crypto currency community following the launch of a new protocol considered as crucial to Bitcoin’s future sustainability by its backers. The XT fork has brought to the surface an ugly debate and allegations of censorship by the established players resisting the change.
Bitcoin XT has been dubbed by opponents as a “forced solution,” and many in the community are unhappy with what they perceive as centralization with a handful of developers. For some, it is more worthwhile for the system to collapse than to violate the sacred principle upon which it was built.
Concorde Postpones “Forex Trend 2.0”
On Monday, it was reported that the Ukrainian brokerage group Concorde would push back the date for release of its “Forex Trend 2.0” project. The group’s owner and CEO, Igor Mazepa, cited development needs as the reason for the postponement to September.
However, another just as plausible explanation is that the firm needs to handle its recent legal trouble before launching a new offering. Concorde was named as one of thirty bodies accused by the SEC of insider-trading using stolen information, which the company denies and has started an internal investigation in order to clear its name.
EXANTE Client Withdrawals Hampered
Just a day after the Concorde news, it was revealed that a fellow firm accused by American authorities of taking part in the insider trading scheme was suffering the consequences. EXANTE said that despite the SEC not requiring any restrictions to be imposed on the company’s assets outside the U.S, it still faces problems with some counterparties.
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The Maltese prime broker added that they believe these actions are illegal and are currently contesting them in court. The story led to an interesting exchange in the comment section in an attempt to verify the exact situation.
Brazil Threatens to Fine IronFX
On Wednesday, it was reported that the Brazilian market watchdog informed traders that IronFX is not licensed by the local authorities to acquire customers residing in Brazil. The CySEC regulated broker was further warned that if it does not comply with the declaration, the company will be subject to the application of daily fine of R $ 1,000.
The very low daily fine does not seem as a likely deterrent to a company in a market as big as Brazil, but IronFX does have an office in Sao Paulo and the watchdog might take legal actions against it. Like most stories related to IronFX, the comments were heated and nasty.
More Trouble for CWM Associates
On Thursday, we revealed that affected investors in CMW’s managed fund are seeking legal recourse over alleged fraud, filing a class action in a bid to recover money.
A statement by the law firm representing clients said, “The banks that held the CWM Limited accounts are liable for the losses incurred by investors as they were not authorised accounts.”
Saxo Bank Valued at $1.45 Billion
The news broke out on Friday that the Indonesian Sinar Mas Group has acquired a 9.9% stake in Saxo Bank, in a deal that valued the broker at nearly $1.5 billion.
A conglomerate with investments in a wide variety of industries including financial services, real estate, pulp and paper and telecom, Sinar Mas Group is expected to act as a strategic partner, and assist Saxo Bank in growing their business in the Asian markets.