Arena Capital in Liquidation


27 July, AtoZForex.com, Vilnius A New Zealand court has agreed with BlackfortFX’s (Arena Capital) receivers from KordaMentha that the company should be liquidated. Earlier on the 13th of July, the receivers already clarified that assets of BlackfortFX will have to be liquidated, in order to meet obligations to clients.

The receivers of fictitious New Zealand finance company, Arena Capital Limited, moved into a liquidation phase on last Friday after publishing a report confirming claims that the company has been cheating investors.

1,100 unsuspecting scams

The Christchurch-based company founded in 2014, declared itself as a Forex broker trading under the name BlackfortFX. The company has scammed up to 1,100 unsuspecting individual clients, soliciting up to $9 million on the agreement for financial gains from Forex trading undertaken by Arena, through a Swiss trading entity.

The Swiss trading entity – Dukascopy Bank, has denied and does not knowledge any dealings with the scammers from BlackfortFX. Indeed, KordaMentha representatives have uncovered that the company has never even been active in the Forex business. Given that, there have been no actual financial gains and there will be no refunds. Those broker clients who have received sums names as profits, will now have to promptly return the money to the liquidator KordaMentha.

Debt of $4.6 million

The liquidator, has also revealed that the fictitious company’s bank account is left with only $730,000 out of the $9 million and the broker is estimated to owe its 1,100 clients about $4.6 million in total. In addition to the private client deposits, further liabilities include unpaid wages and payroll tax.

Now the liquidator KordaMentha is pursuing individuals to whom Arena Capital Limited had made payments, and have seized all other minor assets, including taking into a possession of three luxury cars.

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