Hi everyone,

On August 3rd 2009 I published here an open letter I had just sent to FX Pulp top management in order to put some light to the increasing rumours going around about links between the newborn Cyprus based Forex broker FX Pulp and the recently deceased Crown Forex S.A, currently under liquidation by Switzerland’s FINMA.

The last couple of weeks, FX Pulp has been sending me the documents I’ve been requesting them. I Googled shareholders and board members names and I was not able to find any link between them and Crown Forex S.A.

I also contacted Cyprus Securities and Exchange Commission (CYSEC) to get an official confirmation of the documents received from FX Pulp, but no one from CYSEC has attended my request.

With the lack of proves given by those assuring about the links between both companies and the paperwork provided by FX Pulp and the lack of response from CYSEC, at this time I can not ban FX Pulp from advertising on FXstreet.com so they are very welcome to stay as any other firm that is playing honestly in this market.

If any of you reading this post is able to provide any prove about links between Crown Forex S.A and FX Pulp, please get inmediatly in touch with me at francescATfxstreet.com. Otherwise, case close.

Thanks

Francesc

Hi everyone

Yesterday I published here an e-mail I personally sent to the marketing contact we have at FX Pulp in order to know the truth about the rumours of links between the newborn FX Pulp and the about-to-be-liquidated Crown Forex S.A.

Here you have the response from Said Salem, Managing Director at FX Pulp.

FX Pulp to FXstreet.com - There is no link between FX Pulp and Crown Forex S.A

Once I read Mr. Salem’s response, I sent them an e-mail back requesting to get a full list of board members and shareholders names in order to check them out by myself.

I think it is the only way to make sure that there is no link between both companies.

I’m waiting for their response

I’ll keep you posted

Francesc

This e-mail has been sent today to the marketing representative that deals advertising on FXstreet.com on behalf FX Pulp.

I hope to publish soon their response

Francesc

Open Letter to FX Pulp top executive

Dear Ispeer

Your name has been given to me by Daniela Menascé from our Online Advertising Support team.

Please, resend this e-mail to your firm’s top executive.

There are a lot of rumours going around that former Crown Forex S.A management is now behind the scenes at FX Pulp.

As you may already know, Crown Forex S.A is currently in a bankruptcy process in Switzerland and many traders are being trapped there.

At this time, we do not allow any advertising at FXstreet.com from any company related somehow to Crown Forex S.A management. This will apply till we get more information from the Swiss FINMA about the reasons of Crown Forex S.A liquidation.

As these increasing rumours are not good for FX Pulp nor for FXstreet.com, I would like to get an official statement from your top executive in order to clarify things out.

Thanks in advance

Francesc

note: this e-mail and your response to it are going to be published at my personal blog at http://blogs.fxstreet.com/francesc/ as I consider very important to keep this conversation wide open to everyone.

–
Francesc Riverola
CEO & Founder
http://blogs.fxstreet.com/francesc/
FXstreet.com
FOREXSTREET S.L
Portaferrissa 7, 1er 2ona
Barcelona, 08002
Tel. +34 93 3040495
Fax +34 93 3040496

Hi everyone

I’ve noticed that FINMA has updated the info displayed at

http://www.crownforex.info/

It seems that the process is still far from ending….

Francesc

IMPORTANT INFORMATION TO CLIENTS OF CROWN FOREX SA IN LIQUIDATION
July 30, 2009

Dear clients, dear visitors,

Claims Processing
Since the opening of CROWN FOREX SA’s bankruptcy on May 19, 2009, we have received many statements of claims.

The statements and attached documentation are currently in the process of being analysed. They will be decided upon and a creditors’ plan shall be drafted. Due to the number of documents received, this will last several months.

No further trading
It appeared in the course of the bankruptcy process that a forex trading platform was and may still be illegally operated abroad under the name of CROWN FOREX SA.

Any trading activities on this platform that may have taken place after May 19, 2009 at 8:00 (Swiss time) are not binding upon CROWN FOREX SA, in liquidation.

Investments with Crown Forex SA, in liquidation through third financial intermediaries
It also recently appeared that US financial intermediaries have been collecting funds from investors for alleged further investment with an entity named CROWN FOREX before and after the opening of the bankruptcy of CROWN FOREX SA, in liquidation. Those investors were told that their funds would be held in segregated accounts.

Please note that:

1. since December 9, 2008, Laurent WINKELMANN and Philippe von BREDOW are the only authorized legal representatives of CROWN FOREX SA ; no power of attorney have been delivered to any third person or entity since that date
2. since December 9, 2008 no new client and no new account have been accepted by CROWN FOREX SA
3. since December 9, 2008, Laurent WINKELMANN and Philippe von BREDOW have not authorized any reimbursement to investors in CROWN FOREX SA, in liquidation and that since December 24, 2008, the Swiss Financial market Supervisory Authority (FINMA), in order to insure equal treatment of creditors, has forbidden any reimbursement to investors.
4. since May 19, 2009 at 8:00 (Swiss time), CROWN FOREX SA has suspended its activities and has accepted or received no fund from investors
5. CROWN FOREX SA, in liquidation does not hold segregated bank accounts
6. CROWN FOREX SA, in liquidation does not hold any account with ASSOCIATED BANK in the US
7. CROWN FOREX SA, in liquidation and CROWN FOREX, LLC are two different and separate entities
8. Account statements with false account numbers may have been issued in the name of CROWN FOREX SA in favour of persons who are not registered as client of CROWN FOREX SA, in liquidation. Account statements may therefore not be sufficient to substantiate the existence of a contractual relation or of a claim against CROWN FOREX SA, in liquidation.

Any person having been made to believe anything contrary to the above, may wish to contact the financial intermediary they have dealt with, seek legal advice and/or contact the local enforcement or regulatory Authorities.

The Liquidators of CROWN FOREX SA neither provide advice nor acknowledge receipt of claims from investors.

All relevant further general information that can be publicly disclosed on the bankruptcy of CROWN FOREX SA will be posted on this web site. The FINMA will continue to post on its web site www.finma.ch and in the Swiss Official Gazette of Commerce www.shab.ch all legal information pertaining to the rights and obligations of the creditors and debtors in the estate of CROWN FOREX SA, in bankruptcy.

Sincerely,

Laurent WINKELMANN - Philippe von BREDOW

NOTTER MEGEVAND & PARTNERS
Place Edouard-Claparède 3
1205 Genève
SWITZERLAND
p.vonbredow@nomea.ch
l.winkelmann@nomea.ch

Crown Forex appeals regulator bankruptcy ruling
By Reuters
ZURICH, June 11 (Reuters) - Foreign exchange provider Crown Forex said it was appealing against a bankruptcy ruling by Swiss markets regulator FINMA and might also sue the regulator.

Crown Forex, which says on its website it charges a one pip spread for forex trades, has appealed to the Federal Administrative Tribunal, its chairman told Reuters.

“The FINMA decision (to declare bankruptcy) was made to avoid responding to our appeal against an earlier decision to liquidate the company. FINMA are applying the law incorrectly,” Crown Forex Chairman Ibrahim Ali said late on Wednesday.

FINMA responded it was “positive” the court would decide it had applied the law correctly in the case of an appeal, it said in an email to Reuters on Thursday.
Full Story

Hi everyone

When FINMA announced the bankrupcy opening process as of Tuesday May 19, 2009 at 08:00 am (Swiss time), it announced as well that decision would be published on May 29, 2009 at 10:00 am (Swiss time).

In a later communication, FINMA informed that: “Finally, from May 29, 2009, the web site www.crownforex.info will be updated with all relevant information that can be publicly disclosed on the situation of CROWN FOREX SA.”

Well, I’ve been checking FINMA’s site and crownforex.info and nothing new has been published yet.

I’ve also contacted FINMA’s representatives to get details, but no answer yet

Stay tunned…

Francesc

Hi everyone

I’ve been requested by Crown Forex S.A management to post this note here. I’m doing it because its management seems fully credible to me as at this time we do not know yet what they are being accused of.

Francesc

Dear Francesc,

I confirm that the decision FINMA is based on estimations and was not based on actual financial reports.

I also confirm to you that Crown Forex has 30 Days to appeal FINMA Decision and that Crown Forex is currently in the process of Appealing this decision. Once this appeal is completed and filed to the administrative court, FINMA decision will be suspended with immediate effect, and a new decision will be issued by the administrative court after deliberations within few months.

Crown Forex has already presented a comprehensive plan to FINMA and to the administrative court, included in this plan full capitalization for the company and completing the banking application. This plan is expected to be welcomed and taken into consideration by the court.

If FINMA were concerned about the creditors and clients of Crown Forex, FINMA would have considered accepting this plan and the capitalization of the company but most likely they did not even bother to read it!

I have many doubts on the way FINMA and the investigation committee has dealt with Crown Forex File as Crown Forex lawyers identified several law violations practiced by the investigation committee mandated by FINMA.

Finally please note that the previous decision of FINMA that has no effect now!

Was not putting Crown Forex into bankruptcy

Best regards

CrownForex Management

Hi everyone

After many failed contact requests, I finally was honored with an answer from a FINMA’s representative.

This is what I was told:

Dear Mr Riverola
We will inform the public in the Crown Forex case as soon as our decision is effective. Due to procedural reasons this isn’t the case now.

Kind regards,

TL

As you can see, nothing useful at all

I’ll keep trying

Francesc

IMPORTANT UPDATES:
FINMA Opens Bankrupcy Process of Crown Forex S.A
Crown Forex S.A indentifies law violations practiced by FINMA’s investigation committee. Decision could be suspended with inmediate effect

Hi everyone

The worst of my fears has happened, that was to misinform you guys and I want to apologize.

Last week I initially informed that FINMA had taken a decision on Crown Forex investigation but was not effective yet as the company had a 30 days period to opposite.

A few days later, I was informed that the decision taken was liquidation. I double checked the information and seemed 100% correct but it was not.

Under Crown Forex S.A request, I had the opportunity to have a conversation with a FINMA’s representative that is very close to the investigation.

Such representative confirmed me that the decision had indeed been taken. He also corroborates that the company has indeed 30 days to opposite: if the company do not opposite, the decision will be enforced around March 23rd and if they opposite, then the issue will go to court and would take longer.

But when I asked him if it was correct to say at this time that the decision was liquidation, he said it is not correct as FINMA can not disclose its decision at this time…. but the decision could be liquidation? Yes, he said, but they can NOT confirm it and they will NOT confirm it at this time.

I asked the representative what will happen if the worse case scenario happened and it was a liquidation. The answer was that FINMA would run and supervise the procedure and make a call of creditors. Investors would get all their money back if the company had enough assets to grant it.

I also asked the representative if it was true that Crown Forex S.A was able to get new clients while the investigation was in place. He said that it was NOT possible for the company to get new clients, but it was possible that existing clients would transfer new funds to their accounts to trade. Upon FINMA’s view, that is a decision up on clients.

Again, I’m truly sorry… I’m just trying to help and I just messed things up. I want to extend my apologies to Crown Forex S.A for not releasing a news that was true… at least at this time it is not true, that does not mean that it could be true in a few week from now.

I contacted Mr. Swaiss, CEO at Crown Forex S.A to know if the company has enough assets to grant clients to recover all their deposits. He answered: “Crown Forex have more than enough assets to cover clients liabilities further more Crown shareholders are ready to pump CHF 10Mil into the company as capital when the current situation subsides.”

I also welcoming Crown Forex S.A. to make any statement they wish regarding the misinformation published here.

Thanks

Francesc

Hi everyone

As I know many of you are highly concerned for the sake of your money at Crown Forex as the firm is currently under SFBC (Swiss Federal Banking Commission) investigation, I’m trying to be in close contact with management at Crown Forex and SFBC in order to keep you as best updated as possible.

Today,  I got a phone call from SFBC. My counterpart was not able to confirm me when the investigation will end but from our conversation I got the feeling that we are not far from it.

I had been previously told that we could see the end during this week but it seems that the investigation will still last for some more weeks.

What I do get a confirmation is that it is totally true that SFBC does not allow traders to withdraw their money till the investigation will finish. To get this confirmation from SFBC is definitely a relief for me and I hope it is for many of you.

I know that I’m not adding with this post anything new to what you already knew, but I thought it could be helpful as a reminder that we must remain calm as the issue seems to be in good hands.

I’ll keep you posted… and keep me posted about any findings!

Francesc