USGFX Shanghai office hostage incident details


Why did traders invade USGFX Shanghai office? USGFX Shanghai office hostage incident details look deeper into this case, as the broker has provided AtoZForex with an official information.

26 July, AtoZForex - Once again, Chinese traders take physical action to resolve their losses. Last week, a number of USGFX employees were held in Shanghai office as hostages for several days. Fortunately, the story ended up yesterday, when the last three people were released. We look into the details of this case, as the broker has provided us with the official information.

USGFX Shanghai office hostage incident details

According to the USGFX representative, on July 19th, an incident occurred in Shanghai office of Australian Forex broker USGFX. A group of intruders entered the office and initially held 20 members of USGFX staff. The underlying reason for that is the losses bore by clients. Between 30 and 50 of traders intended to compensate the costs resulted from Australian to the US dollar (AUD/USD) trades last week. The official statement provided by the broker claims:

“Apparently the traders in question were heavily shorting the AUD/USD above 0.7600 and continuing adding multiply short positions until their accounts were exhausted.”

According to the official source, an Introducing Broker was trading on behalf of their clients from USGFX MT4 platform. Despite he did the trading himself, all the blame was shifted to the company later on.

Seizing the staff hostages was nothing more than an attempt to offset the losses from trading. The clients held USGFX employees, refusing to release them until their demands were met. A number of staff was liberated earlier this week. However, captors held the rest of the personnel in the office for a longer period of time.

Finally, invaders let the last three hostages leave yesterday. Soon afterwards, the police took the hostages to the station in order to assist with the investigation process.

About USGFX

USGFX is a regulated, and authorized Forex broker with headquarter in Sydney.

USGFX showed anxiety about late police intervention. The company was expecting it to put an end to the affair much earlier. As the official statement says, the safety of employees plays #1 role for USGFX. Now the company continues to work with local authorities and police to assist the investigation.

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