ThinkMarkets court-ordered to return $4.28M amid client dispute, adding to financial challenges and uncertainties for the broker.
Forex broker ThinkMarkets has been slapped with a court order demanding the return of $4.28 million to a former client, Abdurrahman Suzgun.
The Business and Property Courts of England and Wales issued the interim mandatory injunction against ThinkMarkets UK and Australia entities, requiring the transfer of funds into its client money-segregated account in the UK by January 15.
The legal dispute arose after this award-winning broker informed Suzgun of a $4.28 million debit from his account in late 2021, alleging a breach of agreement related to a Swap-Free Account.
Forex broker ThinkMarkets claimed Suzgun engaged in "swap abuse," breaching terms that dictated the account's use only in exceptional circumstances and for short-term positions.
Despite the ongoing legal battle, the court's order mandates the return of the disputed funds, warning of potential contempt of court consequences if not adhered to. This ASIC-regulated broker faces the risk of imprisonment, fines, or asset seizures for non-compliance.
The auditors issued a "going concern" warning amid reports of substantial losses and debt. The court order adds to the company's recent financial woes, casting shadows on its future outlook. The legal proceedings are set to continue in the UK courts in February, with the outcome yet to be finalized.
The broker has been navigating challenges recently, including its failed attempt to go public through a merger with FG Acquisition Corp. For more information on ThinkMarkets, stay updated on our forex broker news page.