February 9, 2021 | AtoZ Markets – USGFX (Union Standard International Group. Pty Ltd), a Vanuatu-based forex broker, reported yesterday that BRI Ferrier, the appointed liquidator of a brand regulated by the Australian Securities and Investment Commission (ASIC), was attempting to confiscate its assets outside Australia.
USGFX assets in Puerto Rico frozen at the request of the liquidator
In a message to clients, the now-bankrupt forex broker accused BRI of abuse of power after the liquidator instructed First Bank in Puerto Rico to freeze USG Global accounts.
"This behavior has not only negatively impacted USG Global's efforts to facilitate the processing of withdrawal requests for USGFX clients, but also seriously impacted the rights of USG Global clients," the parent company said.
Although the company is owned by the same person, its Vanuatu brand is a separate legal entity. It operates independently of the brokerage business currently being liquidated in Australia.
The USG Group also claims to have no control over the liquidation process but continues to process withdrawal requests for USGFX clients who have transferred their accounts to its offshore company.
The brokerage company added that they still intend to preserve the brand and global operations, regardless of the current situation, and without wasting resources and money on useless disputes.
BRI blames Min Seo for trouble
In August, the USGFX board announced the relocation of the brokerage company's headquarters from Australia to London. Until recently, UK and Australian companies had the same directors, and the UK subsidiary was majority-owned by Myanmar-based Hein Min Soe, who also served as an Australian business director. However, in October, Hien Min Soe stepped down as director of the brokerage in the United Kingdom.
The bankruptcy trustee has repeatedly accused the owner of USGFX of the company's problems and dilemmas.
USGFX Australia is in bankruptcy following a corporate investigation by the regulator. In August, the Australian Federal Court ruled to liquidate the broker, after which the regulator revoked the company's license.
The ASIC told the court that it suspects two brand representatives of "dishonest and unfair conduct in conducting financial business in Australia." In particular, they prevented the withdrawal of client money.
Related: ASIC Sues USGFX for Providing Forex Trading to Chinese Clients
This situation has nothing to do with the FCA regulated business in the UK, USG UK. The company continues to operate normally.
Read also: USGFX Begins Operations in South Africa With FSCA License
USGFX, which opened its doors to business over a decade ago, is one of the oldest foreign exchange brokers in the Asia-Pacific region. The company is headquartered in Sydney but has branches in Auckland, Shanghai, and Hong Kong.
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