The operations of Dubai-based institutional forex broker Fortress Prime have been suspended after it has consistently been withholding client finds, finance news provider Finance Magnates reported on Monday. Its clients cannot check their account balances since at least two tech providers have terminated their services to the broker within three months.
Fortress Prime first showed obvious signs of trouble in August 2015 when many of its clients were unable to withdraw their funds. Clients were promised to receive access to their investments, which later turned into promises that the broker will repay its clients in several tranches of 25% installments. However, none of this happened. Clients have still not received any funds.
Fintech company PrimeXM became the second technology provider to terminate its business with the troubled broker, the media said quoting PrimeXM founder Clive Diethelm. The fintech partnered with Fortress Prime late 2015 under the conditions that the broker would settle each quarter 25% of its outstanding obligations to clients.
“[…] I have not been able to verify a real intent to resolve the situation in regards to the disputed client funds,” Diethelm said.
Nothing indicates any operational changes on Fortress Prime’s website.
Fortress Prime is a unit of Fortress Capital Investments, in which the Abu Dhabi ruling family owns a stake. The company operates as an investment and a clearing house. It serves brokers and private investors. Fortress Prime offers institutional liquidity and white label solutions for starting brokers. 1
Source: Finance Magnates