It seems that the dramatic situation in the offices of the Australian based brokerage USGFX in China isn’t anywhere near its end as it has entered a day six.
Last week, 30 to 50 retail clients of this forex broker company from Australia have entered their offices in Shanghai, China and took about 20 employees as hostages. They have barricaded themselves inside the building and are refusing to go out before their requests have been met.
The clients are demanding the return of around $2.6 million which they have lost in trades last week, and they are holding USGFX responsible for the event. The retail clients have since released the majority of them during the weekend but it seems that three employees of the brokerage are still being held against their will inside the offices and it isn’t known if or when will they be released. The remaining hostages are reportedly from China and Taiwan.
USGFX is operating under the company called Union Standard International Group Pty Ltd, which is a licensed under the Australian Securities and Investments Commission (ASIC). They are increasingly more worried about the welfare and fate of their employees who have remained as hostages inside the building, considering that the dramatic situation doesn’t seem to be nearing its end. They have reported also that they are in disbelief that the Chinese police still hasn’t intervened to resolve the situation
The marketing manager for USGFX, Justin Pooni has commented on the ordeal: ‘’This is a clear violation of the law with intruders holding people against their will. I would have thought that the police would intervene at this stage. We are continuing to work with the local authorities in an attempt to bring this situation to end.’’
Australian regulator ASIC has stated that it is continuing to be in contact with their brokerage in China to figure out if the current situation is impacting their business operations on the whole.