The Cyprus Securities and Exchange Commission (CySEC) has extended the suspension of Petros Zachariades, the sole shareholder of Crowd Tech Ltd, which operated the forex and contracts for differences (CFDs) broker, Trade360. This extension affects his ownership and management roles within the company.
Actions Taken Against Petros Zachariades
According to CySEC’s latest announcement, Zachariades remains barred from exercising his voting rights linked to Crowd Tech shares and is prohibited from performing any management duties on the company’s Board of Directors. This suspension was first introduced in January 2023 due to concerns about Zachariades’ influence on the company’s operations, which the regulator described as “prejudicial to sound and prudent management.”
Crowd Tech, previously known as MPF Global Markets Ltd, held a Cyprus Investment Firm (CIF) license while operating Trade360. However, the company has voluntarily surrendered its Cyprus license, which is currently under regulatory review.
Troubles for Trade360’s Global Operations
Crowd Tech, based in Cyprus, is not the only entity associated with Trade360 that has faced regulatory scrutiny. Sirius Financial Markets, the Australian company managing Trade360 in Australia, surrendered its Australian Financial Services license in July 2022 following a regulatory investigation by the Australian Securities and Investments Commission (ASIC).
ASIC uncovered several violations, including the use of an offshore call center, Toyga Media Ltd, to source clients. The call center employed high-pressure tactics to encourage clients to trade high-risk instruments, such as CFDs and margin forex contracts. Despite not being licensed to provide financial advice, the call center was found to be offering guidance to clients, leading to further regulatory action.
The Australian regulator also noted that Sirius Financial engaged in “unconscionable conduct and behavior likely to mislead or deceive.” As a result, ASIC banned multiple executives involved with Trade360’s Australian operations.
This series of regulatory actions reflects the mounting challenges faced by Trade360 across both its European and Australian entities.
