CySEC Suspends Voting Rights of FXOpen Shareholder Following His Arrest

On Tuesday, the Cyprus Securities and Exchange Commission (CySEC) announced the suspension of voting rights of Aliaksandr Klimenka, the sole shareholder of FXOpen EU Ltd.

CySEC made the decision at the Board meeting held at the end of July this year. The regulator believed that Klimenka's influence as the company's sole indirect shareholder could be harmful to the sound and prudent management of the company.

At the same time, the Cypriot regulator gave FXOpen six months to find a solution. Whether it is a change of ownership or internal adjustments, the company must find an effective solution to the governance issues within the next six months and insulate the company's management from the shareholder's negative influence.

In September, the Australian Securities and Investments Commission (ASIC) announced the cancellation of FXOpen AU Pty Ltd's license, stating that FXOpen AU had failed to comply with its core obligations as an AFS licensee.

Furthermore, earlier this year, Klimenka was arrested in Latvia and charged in the United States with money laundering conspiracy and operating an unlicensed money services business.

It was reported that he, along with Alexander Vinnik and others, controlled the digital currency exchange BTC-e, which facilitated cybercriminals around the globe, obtaining the proceeds of their crimes by assisting in illegal activities such as computer hacking, malware, identity thefts, bribery of officials and drug distribution rings.