As the title mentions, after an audit by the CySEC regulatory commission, reveals a “hole” of 176 million in money from the broker's clients ...
176 million in debt by IronFX
It all started with complaints from clients of the broker, which began around December 2014, while in July 2015 the company had already accumulated more than 1000 lawsuits. European regulators, specifically CySEC (from Cyprus, where IronFX resides), as well as ESMA have later concluded a thorough inspection and audit of the broker.
Broker in tax haven
The CySEC authorities determined that there was a failure in the broker's preventive mechanisms. In addition to this, they found a violation in the formula used by the broker to calculate the money it owes to its clients / traders. The CySEC authorities determined that the formula used was not fair, and that it favored the broker.
CySEC itself has defined this problem as a large company in Cyprus that did not particularly handle withdrawals from its clients very well.
As we mentioned in recommended brokersIf the broker is in a tax haven such as IronFX in Cyprus, we recommend being very careful. Here is the perfect example. And there are still many traders who claim that if it had been another broker, the license to offer their services would have already been withdrawn.
Be very careful to all who have an account with this broker, as soon as the news is published I suppose that withdrawals will increase and it will probably be even more difficult to withdraw the money.