Plus500 blames on technical issue

10 June,, Amsterdam — It is just a day ago, when Plus500 came out publicly with positive news for its unsettled clients with frozen accounts. From the published metrics it was made clear that the re-verifying process has been fruitful, as about 8,457 accounts got reactivated again. Just about time, as it has already been three weeks since the overhaul of the FCA on the firm’s anti-money laundering policies. Marking a good step into the right direction for the London listed brokerage.

Even though, the re-verifying progress signifies a milestone, a remarkable development has taken place during the process. According to Business Insider, an anonymous Plus500 UK client has notified that its account has accidentally been closed, while simultaneously a new one was opened at Plus500 subsidiary in Cyprus. Does this confirm the earlier rumored fuss about Plus500 forcing and automating their London clients’ accounts for a transfer to its Cyprus branch?

In response by Plus500, the firm has sent the anonymous UK client an email, which clarifies that it has been a technical issue. The excerpt of the email concludes: “Due to a technical issue your trading account with Plus500UK was incorrectly closed and a new trading account was opened with Plus500CY. This issue was solved, we have reverted all and the trading account under Plus500CY was closed and is no longer available for trading,” (Source: Business Insider). As Plus500 blames this accidental mistake on a technical issue, the reasoning is quite far-fetched, which only raises more questions about the firm from the outside world.

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Alongside this recent insight, the CFD broker still needs to resolve the remaining 14.000 frozen customer accounts. Showing signs that Plus500 is fully stretched to its capacity to deal with the issue, while in the meantime it faces a takeover by the gaming giant Playtech. What started off with a minor system overload at Plus500, it turned out to be something more drastic. As soon as it got publicly viral that Plus500 was under FCA’s scrutiny for AML procedures, the firm’s shares plunged significantly. Hence, making it beneficial for Playtech to opt for an acquisition, since the price for brokerage was only estimated at half the value prior all the fuss.

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