Following the suspension of trading in WorldSpreads just after midday on16/03/2012, due to "possible financial irregularities", clients of the spread betting company have been told that access to their money is effectively frozen until further notice. No withdrawls are being permitted, and no new trades being accepted.
We appreciate that this is a distressing time for clients, some of whom now have uncertainty over the recoverability of their livelihood, therefore we will continue to update the site with any news regarding the situation as it becomes apparent.
'Client Money Frozen'
Following the suspension of WorldSpreads share trading, customers attempting to access their account, are being met with the following notice:
We have contacted WorldSpreads on clients' behalves, and the company expectedly have been silent on any further updates than the website notice, however we have had several complaints from other customers of the site regarding their lack of compassion surrounding the situation and our experience did not leave them covered in glory. Several users have very significant positions held with the company and whilst Northern Rock, and 'failures' of other household names in the banking industry in recent times spring to mind, the situation for clients has many similarities to the 2011 grand jury investigation, indictment, and website seizure of major US Poker site Full Tilt. In that situation, many professional Poker players kept their significant bankrolls in US Poker sites such as Full Tilt and PokerStars, only to arrive at the site one day with a 'This site has been indicted' message across the screen. The actual situation regarding WorldSpreads is still unknown, publically at least, and the legal situation doesn't bear any resemblance to the US Poker sites. The point here is that professional traders' livelihood (ie their bankroll) faces uncertainty, and this is a very distressing situation for all those involved. Whilst a 'freezing' of client withdrawals is logical to prevent a 'run on the bank' type situation, some protection needs to be offered to customers by the regulators to prove that they have learned lessons from recent history.
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