The British Virgin Islands Financial Services Commission regulated Forex brokerage GCMFX has gone bankrupt! The broker has filed bankruptcy with the US Bankruptcy Court right before the Easter weekend. Why was GCMFX bankruptcy filed?
20 April, AtoZForex – GCMFX, operated by Gallant Capital Markets Limited, has filed for bankruptcy with the United States Bankruptcy Court for the Eastern District of New York. However, GCMFX is regulated by the Financial Services Commission (FSC) of British Virgin Islands.
On April 14, 2017 (Friday), the Forex brokerage published an announcement on its website www.gcmfx.com. For the perusal of AtoZForex.com readers, I am attaching the screenshot of the previous announcement.
Gallant Capital Markets, GCMFX bankruptcy details
GCMFX bankruptcy has been filed through a voluntary petition under Chapter 11 of the US Bankruptcy Code. Additionally, the New Zealand incorporated company WSM Invest Ltd. acquired GCMFX back in 2014. At that time, the deal for merging with WSM Invest was valued between $10.5 and 14.5 million.
Moreover, the retail Forex broker GCMFX became one of the first entities to be regulated by BVI’s Financial Services Commission dating back in 2011. WSM Invest is a financial service provider (FSP) registered in New Zealand to provide various investment and financial services.
Why was GCMFX bankruptcy filed?
Gallant Capital Markets has recently updated its bankruptcy announcement on its website. As per the recent update, the company reveals some information mentioning the reason why GCMFX bankruptcy was filed. However, the reason given by the firm to commence a formal proceeding is to restructure its balance sheet. Additionally, the firm claims it wants to position itself better for future opportunities by taking this move.
Moreover, the other fact given to file bankruptcy protection is the company’s inability to withdraw funds from one of its regulated counter parties to meet liquidity demands. Furthermore, GCMFX says that after reviewing comprehensively on all the available options, the company took this decision. Lastly, the firm says that it has informed its regulatory entity and will provide all relevant information to its clients and vendors as the court allows.
In order to further investigate the case, I decided to call the broker’s UK number. However, every time I called, their line was always busy and the automatic machine asked me to leave voice message. I did leave voice messages, but unfortunately, still did not receive any call back. Moreover, I also have sent them an email, but did not get lucky here either.
Below you can see the recent update by Gallant Capital Markets Ltd.
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