The Cyprus Securities and Exchange Commission has suspended the license of Mind Money Limited, immediately halting all investment activities at the broker formerly known as Zerich Securities. The suspension follows arrests of Mind Money executives in Russia less than two weeks earlier on large-scale fraud charges involving alleged manipulation of frozen American Depositary Receipts worth nearly $100 million.
CySEC cited four governance violations including operating beyond authorized scope, failing to report board changes, lacking minimum required directors, and shareholder suitability concerns. The regulator made no direct reference to the Russian criminal proceedings. Mind Money has one month to remedy the breaches and must return client funds on demand, though it cannot accept new clients or execute new transactions during the suspension.
The firm attributes violations to recent corporate restructuring and claims it continues servicing existing clients while working to meet regulatory requirements.
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FXnCO Insight
** Traders with accounts at Mind Money should immediately verify fund accessibility and consider withdrawal options given the combined regulatory and criminal risks.
Source: Finance Magnates