The Australian Securities and Investments Commission (ASIC) has taken legal action against retail OTC derivatives issuer Prospero Markets Pty Ltd (Prospero) for its alleged involvement in a money laundering scheme.。

ASIC shuts down Prospero market over money laundering charges

Prospero provides derivatives and foreign exchange contracts to retail and wholesale customers, is accused of breaching its Australian Financial Services (AFS) licence conditions and obligations under the Companies Act.。

ASIC's application to the Federal Court follows an investigation by the Australian Federal Police (AFP) into the Changjiang currency exchange remittance chain, which allegedly laundered millions of dollars for criminal syndicates.。

The AFP action, code-named Avarus-Nightwolf, led to the arrest in October 2023 of several former Prospero officers and responsible managers on suspicion of involvement in illegal proceedings.。Changjiang Currency Exchange allegedly secretly operated by Changhe Money Laundering Group。In the past three years, the company has cleaned up nearly 2.$2.9 billion in criminal activity。

ASIC also suspended Prospero's AFS license in December 2023 due to Prospero's failure to file audited financial accounts for 2023.。

The regulator said it was concerned about the return of large amounts of client money held by Prospero and believed appointing a liquidator was the best way to ensure its efficient allocation.。ASIC nominated Andrew Cummins, Jonathon Keenan and Peter Krejci of BRI Ferrier as co-liquidators of the brokerage firm。

The case is scheduled for a hearing in federal court on March 20, 2024.。

ASIC's recent enforcement actions

ASIC has been proactive in regulating financial markets to protect investors and maintain market integrity.。ASIC recently filed a bankruptcy order against social media influencer Tyson Scholz, known as "ASX Wolf," for failing to pay 456,296 as ordered by the court..64 AUD。The action underscores ASIC's commitment to enforcing legal judgments and ensuring individuals comply with financial regulations.。

In addition, Russell Sandiford, a former director at Reiwa-Capital, has admitted two allegations of dishonesty involving mismanagement of client investments.。Sandiford's admission revealed fraudulent activity within the financial sector, particularly involving a scheme that promised substantial returns but allocated only 1% of the nearly $500,000 collected from investors to customers.。

In addition, the Federal Court of Australia found Web3 Ventures Pty Ltd, which traded in the name of Block Earner, guilty of providing crypto products without the necessary financial services license.。The ruling represents an important step in regulating the emerging cryptocurrency market, highlighting ASIC's role in overseeing new financial products to ensure they comply with existing laws.。