Formal complaints matter

Hungarian National Bank Mentions IronFX Clients in Official Announcement

The monetary authority of Hungary has referred residents to file a complaint with the Cyprus ombudsman service

It’s been months since reports about delayed withdrawal requests from IronFX started to pour in across major forums visited by forex traders. The company has repeatedly stated that it is investigating cases of bonus abuse and put numerous accounts on hold until an internal audit is complete.

With details about their withdrawals missing, clients of the company who have not received the requested funds have had but a few options. A number of complaints to Cypriot authorities including the Cyprus Securities and Exchange Commission (CySEC) and the Cypriot financial ombudsman have attracted media attention and eventually triggered an investigation from the regulator of IronFX Global.

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The Hungarian National Bank has become the first monetary authority to mention the case of missing withdrawals after announcing that it received about 75 signals from residents who have not received the funds they requested from IronFX. The figure starkly contrasts with some media reports in the Hungarian press about hundreds of clients suffering from the issue.

The official notice, which the central bank of Hungary published last week, stated that it notified the Cypriot supervisory authority about the situation. The Hungarian National Bank has also requested all clients of IronFX affected by the issue to formally file complaints with the Cypriot Financial Ombudsman.

After several months passing without full resolution to the matter, Finance Magnates’ reporters have received information from clients affected by the issue that the company has started processing some withdrawals.

Internal Auditing Progress

An IronFX spokesperson shared with Finance Magnates that the internal account auditing is still ongoing and is being conducted in collaboration with the CySEC.

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Asked about how the process is going and as to the progress of the internal review, the spokesperson stated, “Clients who have filed formal complaints are having their cases reviewed. Investigations are progressively completed and clients with available balances have already been refunded.”

“In some cases the settlement amounts are substantially lower than the amounts claimed,” the spokesperson added.

With regulatory pressure intensifying and after the confirmation of the direct involvement of CySEC in the internal auditing at IronFX, some clients of the company are seeing some of their withdrawals completed.

It seems that at present the best course of action for customers who have their withdrawals pending is to pay a €20 euros fee and file a formal complaint with the Cypriot Financial Ombudsman which is supposed to speed up the review of their account. Since those clients of IronFX who have filed a formal complaint with the regulator are getting in front of the queue, those who haven’t may have to wait for an extended period of time.

The CySEC has confirmed that the announcement by the Hungarian National Bank was made in concert with the Cypriot regulator, and stated that it will inform investors of further developments, if deemed necessary.

Meanwhile, the restructuring at IronFX continues with the CEO of the company’s UK operation Stefanos Mitsi parting ways with IronFX Global UK Ltd., just six months after being promoted.

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