EBC Financial Group’s UK entity has disclosed that a former director allegedly misappropriated company funds, with the total amount potentially exceeding $3.5 million across multiple years. The broker first reported the incident in its September 2023 financial statements, noting a write-off of approximately $994,000. Subsequent filings for 2024 and 2025 listed “exceptional” costs totaling an additional $2.5 million combined, though these weren’t explicitly labeled as misappropriation. The company has not publicly identified the former director involved, stating only that authorities are investigating while legal options are being considered. EBC’s UK unit, regulated by the FCA, serves professional traders and owns the group’s offshore retail-facing Cayman Islands entity. Recent directorship changes include former CEO David Barrett’s March 2026 resignation and ultimate owner Qin Huazheng stepping down after just four months on the board last week. EBC did not respond to requests for comment.
FXnCO Insight
Traders using EBC’s services should monitor upcoming financial statements and regulatory announcements closely, as further revelations could impact the broker’s operational stability and regulatory standing.
Source: Finance Magnates