Several Investors File A Lawsuit Against Now-Defunct FxWinning Limited
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Several investors have filed a lawsuit against the now-defunct forex trading platform known as FxWinning Limited. The investors led by Cody Kerns are suing the trading firm and five of its owners amid allegations of engaging in fraud and other deceptive trade practices.
Investors file charges against the owners of defunct FxWinning
These investors are represented by a law firm based in South Florida known as Sanchez Fischer. The lawsuit was unveiled last week, with the investors seeking justice over the funds they lost because of trading with the firm.
One of the websites belonging to FxWinning Limited claims that the company is registered in Hong Kong. It also operates two forex websites known as fxwinning.net and fxwinning.pr. The 27-page lawsuit filed by these investors has shared the names of the owners and partners at this trading platform.
The listed owners and partners at the trading firm are David Merino, Jonathan Lopez, Julian Kuschner, Rafael Brito Cutie, and Renan da Rocha Gomes Bastos. The lawsuit claims that these individuals engaged in fraudulent activities that resulted in losing customer funds.
According to this lawsuit, FxWinning and the principals at the firm solicited tens of millions of dollars from investors. These parties fraudulently promoted the trading algorithm used by the platform while also making false promises to investors. It also accused the trading firm of “misrepresentations and outright lies.”
These investors have also alleged that FxWinning and the principals operated an elaborate scheme that tricked them into investing with the company. The agents lured investors into increasing their investments on the platform by making false promises about securing significant returns.
FxWinning shut down with investor funds
FxWinning failed to deliver on the promises that it made to investors. The trading platform halted client withdrawals because of a “compliance audit,” but the development started the woes that later faced traders. The Financial Commission previously probed the platform.
The brokerage platform later shut down its operations despite assuring investors that the compliance audit was complete. Before shutting down, the trading platform had assured investors it had passed the compliance audit, but these claims were inaccurate.
The investors who lost money in this scheme are now looking to recover more than $28 million by taking legal action against the trading platform. The law firm representing the plaintiffs said that investors who had their money stuck on the trading platform could no longer withdraw their funds after operations shut down. The law firm claims that FxWinning and its owners stole investor money.
One of the websites used by this trading platform, fxwinning.net, appears to have halted operations in late June, with a message on the site attributing the issue to “unforeseen circumstances.” The second website, fxwinning.pr, cannot be accessed. Before shutting down, the websites had claimed that FxWinning has some of the largest banks as liquidity suppliers, including Barclays, Citi, Commerzbank, Morgan Stanley, and UBS.
