ASIC has appeared before the Federal Court in Melbourne as part of its action to protect investor funds in OTC derivatives issuer, Forex Capital Trading Pty Ltd, while an ASIC investigation is underway.

On 12 March 2019, ASIC obtained ex parte interim orders in the Federal Court against Forex Capital Trading that restrained the company from removing their assets from Australia, disposing of their property and freezing monies in its bank account, and which prevented the sole director, Shlomi Yoshai, from leaving Australia.

On 18 and 19 March 2019, the matter returned before the court where ASIC sought an extension of the interim orders. The court declined the extension of the freezing orders but made orders to prevent Mr Yoshai from leaving Australia until 5:00pm on Monday 25 March 2019 and to restrain Forex Capital Trading from transferring any property, including client money, overseas.

The matter is next before the court on Monday 20 May 2019.

Editor's note 1:

On 16 April 2019, the orders restraining Forex Capital Trading from transferring any property, including client money, overseas were extended by consent of the parties to 3 June 2019.

Editor's note 2:

On 31 May 2019, the Orders restraining Forex Capital Trading from transferring any property, including client money, overseas were extended and amended by consent of the parties to 30 September 2019. The amendment to the Orders requires Forex Capital Trading to seek ASIC approval in writing prior to making any overseas payments.

Editor's note 3:

On 26 September 2019, the Orders restraining Forex Capital Trading from transferring any property, including client money, overseas were further extended by consent of the parties until 5pm on 31 January 2020.

Editor's note 4:

On 21 January 2020, the orders restraining Forex Capital Trading from transferring any property, including client money, overseas were further extended by consent of the parties until 5pm on 27 March 2020.

Editor's note 5:

On 25 March and 27 May 2020, the orders restraining Forex Capital Trading from transferring any property, including client money, overseas were further extended by consent of the parties. The orders currently remain in place until 5pm on 24 July 2020.

Editor's note 6:

On 22 July 2020, the orders restraining Forex Capital Trading from transferring any property overseas, including client money, were further extended by consent of the parties. The orders currently remain in place until 5pm on 18 December 2020.

Editor's note 7:

On 11 December 2020, the orders restraining Forex Capital Trading from transferring any property overseas, including client money, were further extended by consent of the parties. The orders currently remain in place until 5pm on 18 June 2021.

Editor's note 8:

The Federal Court ordered Forex CT to pay a $20 million penalty for engaging in systemic unconscionable conduct, paying conflicted remuneration to its team leaders and account managers and failing to act in the best interests of its clients. The company’s sole director, Shlomo Yoshai, has been ordered to pay a $400,000 penalty and disqualified from managing corporations for eight years for breaching his duties as a director and aiding Forex CT’s unconscionable conduct (refer: 21-120MR).

The orders restraining Forex CT from transferring any property overseas, including client money, expired on 18 June 2021.