Recently, retail foreign exchange and CFD broker USG Lianjun International Group Varuatu said that BRI Ferrier, the liquidator of the company's ASIC regulatory body, the Australian subsidiary of USG, tried to freeze and confiscate assets outside Australia.
In July 2020, USG Australia's subsidiary entered the external management liquidation stage, and was soon cancelled the AFS license by the Australian Securities and Investment Commission (ASIC). However, USG United International issued a statement saying that this move was implemented under forced intervention by ASIC.
USG Global, regulated by the Varuatu Financial Services Commission (VFSC), accused liquidator BRI Ferrier of abuse of power, which has instructed Puerto Rico First Bank to freeze USG Global accounts.
USG Lianzhuan International said, "The liquidator's behavior not only has an adverse impact on USG Global's assistance to Australian companies in providing customers' withdrawals, but also seriously affects USG Global's customer rights."
According to the " Sydney Morning Herald ", BRI Ferrier, a liquidator of USGFX's Australian subsidiary, received a total of about US$200 million in customer funds claims. However, data shows that as much as $588 million is invested in the company's capital account.
Although the company's entity belongs to the same person, USG Global reiterates that the Varuatu brand is an independent legal entity independent of the Australian company that is in bankruptcy liquidation.
USG Lianzhuan International further stated that although it cannot control the liquidation process, it has been processing withdrawal applications from USGFX customers, who have transferred their accounts to the offshore entity of Varuatu. "No matter what the current situation is, the company is still determined to retain its brand and global business, rather than wasting resources and money in a war of words."
In December last year, USGFX issued a statement saying that due to regulatory restrictions, processing customer withdrawals is slower than expected, and the company is expected to be unable to refund all customer funds applied for withdrawals by the end of 2020 as originally planned. However, USGFX vows to return all the funds receivable by the customer. (For details, see . USGFX expects the customer withdrawal process to be postponed, but vows to return it all)
In August last year, USG Lianjun International announced the relocation of its company headquarters to London, England. Liquidator BRI Ferrier has been working to keep in touch with USG's lead Hein Min Soe. He is a major shareholder of USG UK and a director of an Australian subsidiary. However, Hein Min Soe announced his resignation in October last year.
BRI Ferrier has repeatedly accused Hein Min Soe of causing trouble and creating dilemma for the liquidator's work, and even tried to prevent the liquidator from entering the backstage of the MT4 trading platform.
ASIC issued an announcement in mid-December last year stating that the regulator had filed civil lawsuits in federal court against Union Standard United International Group (transaction name USGFX) and its two authorized representatives (ARs) Maxi EFX Global (transaction name EuropeFX) and BrightAU Capital (transaction name TradeFred). (For details, see "ASIC filed civil lawsuit against USGFX and its two authorized representatives in violation of Chinese law")
ASIC once said when obtaining a court liquidation order that the regulator was concerned that USG and its two authorized representatives had engaged in dishonest and unfair behavior in Australia's financial services process, including preventing customers from withdrawing money from their accounts.
Despite this, USG Lianjun International's UK company business is not affected by this incident and conducts transactions normally around the world.
USGFX is a retail forex broker with more than 10 years of history and one of the longest forex brokers in Australia. Previously, the company was headquartered in Sydney , with branches in Auckland , Shanghai and Hong Kong.
