The Bankruptcy of XeroMarkets Makes No Withdrawal for Investors

XeroMarkets, an unregulated Forex broker registered only in St. Vincent and the Grenadines, has declared bankruptcy.

On May 2, employees of XeroMarkets received a Notice of Closure from Hanis Mutalib, manager of the human capital department, stating that the company is insolvent and will cease operations as of May 14.

"It is with deep regret that we annouce that our company has gone bankrupt and therefore,the company has ceased operation of our company effextive on Sunday, 14 May 2023," according to the notice. 

MTG Capital SDN BHD, the company owns XeroMarkets, claimed to make this decision "after careful consideration and review of our financial standing, current market consitions, and future projections. "

XeroMarkets employees were reportedly working from home for several days before May 14.

Although a source said that the head of the company would liquidate the company's property and use the funds to repay its customers, many users revealed that their withdrawals are "pending."

The bankruptcy of XeroMarkets gave a hit to its clients. The broker was registered with St. Vincent and the Grenadines Financial Services Authority (SVG FSA) but was not regulated, as the FSA does not regulate Forex activities nor license Forex brokers.

The fact that the broker is not regulated means the users are not protected and would not be compensated by any regulatory body.

Another SVG-FSA-registered broker absconding is another alert for all investors: choosing an unregulated broker in this risky financial market only increases the risk but not the reward.