After months of questions asked by Finance Magnates’ reporters and possibly other media outlets, the Cyprus Securities and Exchange Commission (CySEC) has broken its silence today. The regulator publicly announced that it is investigating the Cyprus Investment Firm (CIF) IronFX.
Numerous complaints from clients being denied withdrawal requests have been flocking into the offices of CySEC, which prompted action by the regulator. The broker has put the withdrawal requests of dozens of its customers on hold, on the grounds of an ongoing investigation into bonus abusing by its clients.
CySEC wishes to clarify that there is an ongoing investigation against IronFX
“CySEC wishes to clarify that there is an ongoing investigation against IronFX with respect to possible infringements of the Legislation. Upon completion of the investigation, the CySEC will publish its findings and/or will proceed with further announcements in the meantime, if deemed necessary,” the official statement issued by the regulator reads.
Online groups of traders have been organized and a number of the brokerage’s customers have voiced their concerns about pending withdrawal requests.
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An IronFX representative has officially stated to Finance Magnates that the account holders complaining about pending withdrawals amount to 0.17% of the active client base of the company. On the other hand, clients with pending withdrawal requests have been complaining that their emails to the broker have remained unanswered for months.
Dozens of the brokerage’s Russian clients have been posting on online forums that they have not received any replies to their withdrawal status requests ever since the broker pulled out of CRFIN and decided to close its office in Russia.
We welcome the investigation that will prove there is no wrongdoing on behalf of the company
Commenting on the regulatory announcement, a spokesperson for IronFX shared with Finance Magnates’ reporters, “The CySEC announcement is a standard announcement relating to our internal investigation of the abusive trading by clients in breach of our terms and conditions.”
“We welcome the investigation that will prove there is no wrongdoing on behalf of the company and will put an end to the defamatory claims being made against the company. We have been working closely with CySEC to assist them and to date we have received no indications of wrongdoing. We have obtained several legal opinion and expert opinions supporting our actions to date,” the statement concluded.