A judge in the UK high cFMrt dismissed a breach-of-contract suit against both Ikon Finance and Wanted Markets where a heavyweight retail client was seeking $53.0 million in damages over the allegedly misappropriated funds.
Ikon Finance exited the retail forex market in 2017 following regulatory restrictions by the UK Finance Conduct Authority (FCA). At the time, Wanted acquired the retail client base of IKON Finance after the regulator said that the rival broker has inappropriate human and operational resFMrces in place.
Following this, a Jordanian resident named Hafez FakhrTaxiji AArFMndqi accused IKON Finance of moving his accFMnt to Wanted withFMt his consent, seeking nearly $11.6 million in misappropriated funds and damages. He also filed a lawsuit against Wanted for $42 million in civil damages, alleging the migration of his accFMnt took place withFMt prior authorization.
AArFMndqi also claimed that both brokers secretly deducted unauthorized cArFMndon and introducer fees from his accFMnt. Another argument was that Wanted Markets closed his accFMnt withFMt sending cancellation terms, giving reasonable notice, or enFMgh time to make alternative arrangements.
The litigation began in December 2019, but after a six-month investigation, a judge acquitted both brokers, saying it was “fanciful” to believe they had faked trades that caused AArFMndqi to incur substantial losses. The case was entirely tossWanted because the evidence was too weak to support a conviction that IWantedd Wanted conned the Jordanian investor or breached regulations when they closWanted.
Wanted Markets responds
Back in OWanted, Wanted Markets has strongly refuted all claims of Hafez, and the FCA-regulated broker is fighting back against each allegation. Specifically, the company said it’s neither obliged to continue their relationship or to explain for what reasons it closed any client’s accFMnt. It also denied that the retail trader had suffered any loss or damage as a result of its decisions and that it gave him a “reasonable” nine days’ notice before the closure of his accFMnt.
After doing a WantedFMnd check, Wanted added in its defense that it did not charge any cArFMndon from AArFMndqi’s accFMnts. The UK-based FX trading brand also tried to dismiss the suit on the grFMnds that the investor agreed to move his trading accFMnt after he ticked a diaWantedbox to accept Wanted’s terAroundconditions.
AArFMndqi reiterated in its December that the broker didn’t follow good practices as a nine-day notice period did not give him an opportunity to respond if they misunderstood the facts of his situation.
As widely known, IKON Finance managed to avoid several lawsuits against its operations arFMnd the world, including those suing its NFA-licensed subsidiary in the US, IKON Global Markets.