This morning, Japanese securities firm GemForex Gem Foreign Exchange issued a notice to the public, announcing that the platform will cease service on May 31, 2023, as it is currently discussing mergers and acquisitions and inheriting business, and has undergone a major overhaul of its management team. What exactly happened that caused such a big earthquake on this platform? How should investors protect their own rights and interests? Ai Huicha provides in-depth interpretation for everyone.
Cause of the incident: The payment company ran away with the payment
GemForex Gem Forex was established in 2010 and claims to be a leading brand in online trading, particularly in East Asia and Central Asia. The platform holds a Mauritius FSC license and is under offshore supervision.
Since early December last year, GemForex Gem Forex has experienced delays in some clients' payments. According to the platform's explanation, the main reason is: (1) Group loan transfer. Baoshi Foreign Exchange stated that since mid-2022, there has been rampant arbitration of dividends in violation of service terms by the group's loan transfer accounts, causing significant losses to the platform; (2) Nearly 36 million US dollars were taken away by payment institution (Company A). Baoshi Foreign Exchange has reported the case to the police and is currently searching for the main culprit; (3) The payment institution (Company B) has not paid nearly 8 million US dollars, and the other party is in arrears. A settlement has been reached and the other party will not be sued for the time being.
Baoshi Foreign Exchange claims that it is precisely the above reasons that have limited the platform's liquidity and disrupted the funding chain, resulting in a delay in the platform's gold disbursement.
Event development: achieving business continuity through mergers and acquisitions
Due to funding constraints, GemForex claims that starting from May 25, 2023, it is in negotiations with GemTrade LLC located in Saint Vincent (hereinafter referred to as the "Target Company"), which is developing GEMFOREX services, regarding all outstanding shares of the Target Company. GemForex has decided to purchase from the shareholders of the target company as a consideration to continue the entire business of the target company.
The negotiated price for the above transaction is $1 billion. Once the negotiation is successful, the transaction will be completed on August 1, 2013. GemForex stated that the money will be used to withdraw funds from customers.
Customer funds: Delayed disbursement calculated at an annual interest rate of 5%
Based on the above statement of GemForex, in short, it means the company transfers and uses the transfer funds to withdraw funds from customers. This is a bit tragic, it's like drawing a cake, a big cake worth one billion US dollars. GemForex is deeply in a debt crisis, and in a notice on May 30th, it stated that "the company's account deposits are currently unavailable. If urgent payments are required, please use other methods than bank transfer
Therefore, GemForex has suspended the previous fixed withdrawal and installment withdrawal. For users who have already applied for withdrawal, the platform will reflect a 5% annual interest rate in the user's wallet account 30 days from the date of withdrawal application. As for how to trade on the platform in the future, we need to discuss with MetaQuotes before making a decision.
Ai Hui Cha Reminder
GemForex's thunderstorm has once again tested investors' risk awareness. For investors, they should choose platforms with strong funds and strict regulations for trading. For platforms with weak risk resistance and fragile capital chains, caution should be exercised when selecting them. Traders who have already invested in GemForex, please pay more attention to Aihuicha. We will continue to monitor the subsequent progress of the GemForex thunderstorm event, update relevant information in a timely manner, and provide platform information services for investors.
