Forex Magnates has learned that about 160 complaints against IronFX (withdrawal problem) were filed on January 22nd with the District Court of Limassol.
According to the allegations, IronFX has been denying withdrawal requests to over 150 accounts which the IBs brought onboard with the firm. The total amount of client funds mentioned in the claim is close to $1.25 million.
In addition, the broker was the subject of an investigative report by the Chinese media in relation to inappropriate marketing of their financial trading services. Other brokers shared similar fates, as SFX and IFX were featured in a segment on China Central Television, and FXTM faced a filmed protest in a local exhibition.
In the current claim against IronFX, introducing brokers have alleged in court that since the beginning of October their clients first experienced withdrawal delays. In November, the problem began deteriorating when about 150 customers had their withdrawals denied altogether without a specific explanation.
Such claims of IronFX withdrawal problem appear to have widened beyond just Chinese customers, with other customers reporting to Forex Magnates and on trading forums that they are experiencing problems with their withdrawal requests being processed.
Specifically, many clients have received messages stating, “We would like to inform you that your account is under investigation for potential irregular trading activities.”
In the past, IronFX attributed withdrawal problem from China to the presence of abusive traders who the broker believed was taking advantage of their bonus offerings.