Prospero Markets Pty Ltd (in liquidation) (Prospero) was a licensed retail over-the-counter (OTC) derivatives provider which offered contracts for difference (CFDs) in margin FX and other assets based in Melbourne.
In November 2023, ASIC commenced an investigation into Prospero regarding concerns that Prospero was not meeting its obligations as an Australian Financial Services licensee.
ASIC commenced its investigation into Prospero following the Australian Federal Police’s Operation Avarus-Nightwolf which resulted in former officers and responsible managers of Prospero being charged with money-laundering offences in October 2023 relating to the Changjiang Currency Exchange money remitting chain.
Winding up Orders
Following an application by ASIC, on 10 April 2024, the Federal Court ordered that Prospero be wound up and appointed liquidators to Prospero.
ASIC took this action to ensure funds were returned to Prospero’s clients in a safe, orderly way and as quickly as possible. ASIC sought to have liquidators appointed to undertake this task due to the serious concerns ASIC held about the management of Prospero’s business. These included concerns about Prospero’s compliance with its reporting obligations relating to its client money accounts. These are the statutory trust accounts in which client funds must be maintained in accordance with the Corporations Act 2001 (Cth).
In making the decision to wind up Prospero, the Federal Court identified a number of significant concerns including Prospero’s ongoing failure to appoint an auditor, lodge audited financial statements for the financial year ending 30 June 2023 and comply with other reporting requirements as a large-scale derivatives trader. The Court was not satisfied that the continuing breaches would be addressed adequately by Prospero in the future and considered that there was therefore a risk to the public interest warranting protection. In particular, the Court held that the appointment of a liquidator was desirable given Prospero proposed to return in excess of $19 million to nearly 2,500 clients.
For more information, see ASIC’s media release 24-070MR.
Liquidation
Andrew Cummins, Jonathon Keenan and Peter Krejci of BRI Ferrier were appointed as liquidators of Prospero on 10 April 2024 (Liquidators). The role of the Liquidators is to take control of Prospero and wind up its affairs in an orderly way, including distributing client funds from the client money accounts.
The Federal Court made orders regarding the distribution of client money on 2 April 2025 (orders and Court's reasons).
As at September 2025, ASIC understands that:
the liquidators have completed the adjudication process for claims relating to client money;
there areexpected to be sufficient funds available to return client money in fullto clients whose claims have been approved by the liquidators (100% return);
in July 2025the liquidators distributed $18.1 millionof client money to clients with approved claims who have provided valid bank account details;
funds will be distributed to remaining clients with approved claims who provide valid bank account details in due course. It is currently anticipated that a further distribution of client money will take place in November 2025.It is important for clients with approved claims to provide valid bank account details to the liquidators so client money can be returned;
the liquidation is otherwise ongoing.
ASIC is monitoring the progress of the proceedings and liquidation of Prospero and is in contact with the Liquidators.
the Liquidators have commenced proceedings in the Federal Court (proceedings number NSD1020/2024) to seek advice and directions from the Court about the process for returning client funds, including whether the Liquidators should pay claims by clients of a related overseas entity, and the payment of the Liquidators’ fees and costs;
on 17 October 2024, the Court made an order that any person, including creditors of Prospero (which includes clients of Prospero who are owed money) can apply to ask the Court to vary the orders (orders);
on 17 October 2024, the Court also appointed Mark Wilson of the law firm W Advisors, to the role of contradictor in the proceedings. The contradictor does not represent any particular party. The contradictor’s role is to assist the Court to determine the questions raised by the Liquidators. It is the Contradictor’s duty to put forward reasonably arguable contrary points to those put forward by the Liquidators;
the proceedings are listed for final hearing on 26 and 27 March 2025 (see orders of the Federal Court)
the Liquidators were not able to commence returning funds to clients until after the proceedings werefinalised.
Licence cancellation
In September 2024, ASIC cancelled Prospero’s Australian Financial Services licence as it is in liquidation. The licence had been suspended since 20 December 2023.
For more information, see ASIC’s media release 24-218MR.
Contacts
ASIC continues to receive inquiries from Prospero’s clients who are concerned about the timely return of their funds.
If you are an investor, you can contact the Liquidators by email at prosperomarkets@brifnsw.com.au, or by phone on 1300 291 012 (toll free) or +61 2 8044 0530 (international).
