ThinkMarkets to Transfer $4.28M as Client Refunds

ThinkMarkets, a Retail FX and CFDs broker headquartered in London and Australia, has been served with a court order from the Business and Property Courts of England and Wales – London Circuit Commercial Court. This court order, amounting to USD $4.28 million, is directed at both of ThinkMarkets operational entities, namely TF Global Markets (UK) Ltd and TF Global Markets (Aust) Pty Ltd. The interim mandatory injunction stipulates that ThinkMarkets must transfer the specified amount, $4,280,818.88, into its client money segregated account in the UK by 4:30 pm on Monday, January 15.

The issuance of this court order follows a legal dispute involving ThinkMarkets and a former client, Abdurrahman Suzgun, from Turkey. In late 2021, ThinkMarkets had communicated to Mr. Suzgun about the debiting of USD $4.28 million from his account, prompting the legal action taken by the aggrieved party against the broker.

Presiding over the matter, His Honour Judge Richard Pearce's order explicitly warns that failure to comply may lead to contempt of court, with potential consequences such as imprisonment, fines, or asset seizure for ThinkMarkets, its directors, or officers.

To provide context to the dispute, Abdurrahman Suzgun, a trader based in Turkey specializing in forex and precious metals, initiated a business relationship with ThinkMarkets UK in 2019. Ostensibly, the purpose was to hedge positions in his physical precious metals business. ThinkMarkets facilitated two accounts for Mr. Suzgun—a standard trading account and a Swap-Free Account, commonly offered by FX/CFD brokers for clients adhering to Islamic law, which prohibits interest charges.

In mid-2021, ThinkMarkets accused Mr. Suzgun of breaching the agreement by engaging in “swap abuse.” The broker contended that the Swap-Free Account was intended for exceptional circumstances and short-term positions, not for over 90% of trades carried for more than a day, as alleged by ThinkMarkets. The broker asserted potential earnings of over USD $1.6 million in Swap Charges if these trades had occurred in the regular account. Subsequently, ThinkMarkets debited $4.28 million labelled as “disputed funds” and an additional $370,000 classified as “undisputed funds” from Mr. Suzgun's account. The funds were transferred to ThinkMarkets Australia, the liquidity provider to ThinkMarkets UK.

Mr. Suzgun vehemently refuted ThinkMarkets' allegations, insisting that all trades adhered to the agreement's terms. Additionally, he claimed that, post-dispute, ThinkMarkets transferred his accounts to its Bermudan entity to evade FCA jurisdiction, despite his objections.

Although the UK courts are scheduled to hear the matter in February, the recent court order mandates ThinkMarkets to return the entire sum of “disputed funds” to its client money segregated account in the UK. This development follows ThinkMarkets' recent attempts to go public through a merger with FG Acquisition Corp. on the Toronto Stock Exchange. The deal, initially valued at approximately USD $160 million, was cancelled in December after FG's public shareholders opted for refunds, revealing ThinkMarkets' financial challenges and prompting auditors to issue a “going concern” warning.