Australia’s financial regulator ASIC has announced that it has applied to the Federal Court to wind up retail OTC derivatives issuer Prospero Markets Pty Ltd.
ASIC launched its investigation into Prospero after the Australian Federal Police Operation Avarus-Nightwolf which resulted in former officials and responsible managers of Prospero Markets being charged with money laundering offenses in October 2023 in connection with the money transmission chain at Changjiang Currency Exchange.
ASIC said it retains a wide range of concerns about the management of Prospero’s business, including compliance with the terms and obligations of the Australian Financial Services (AFS) license as an OTC derivatives issuer under the Companies Act.
Prospero Markets’ AFS license was later suspended in December 2023, technically after Prospero failed to file its 2023 audited financial accounts.
ASIC noted that it understands that Prospero holds significant client funds and is concerned to consider returning these to clients as a priority. ASIC considers that the best way to ensure effective return of funds to customers is to appoint liquidators.
ASIC asked the court to appoint Andrew Cummins, Jonathon Keenan and Peter Krejci, of BRI Ferrier, as joint liquidators of Prospero. BRI Ferrier was also the administrator and liquidator for another Australian-based Retail FX and CFDs broker that went bankrupt, USGFX.
The Prospero Markets matter has been listed for hearing in the Federal Court on March 20, 2024.