FNG Exclusive… It looks like the bankruptcy of Australia based Retail FX and CFDs broker Prospero Markets will turn out OK after all, at least for most of the company’s former clients, employees and creditors.

Prospero Markets was shut down in late 2023 by Australia police, as part of a wider action against a China based money laundering ring connected to the company’s ownership and management. The Prospero Markets ASIC license was suspended in December 2023, and was formally cancelled in September 2024.

Repayment of client funds

FNG has learned via court filings made in Australia that the liquidators of Prospero Markets, BRI Ferrier, paid out about $18.1 million to clients with admitted entitlements and bank account details provided, out of $19.2 million in confirmed client money held at Prospero at the time of its collapse. The payments were made in mid July 2025.

There remains approximately $1.1 million that has been withheld from clients with admitted entitlements, however these clients have failed to provide bank account details. BRI has written to these affected clients requesting bank account details by 15 October 2025, ahead of the next distribution in November 2025. If those clients do not provide bank account details, their funds will be paid to ASIC unclaimed monies at the end of the Liquidation.

BRI Ferrier had hoped earlier this year to pay out all client and creditor claims against Prospero Markets by mid year. However the court proceedings were prolonged due to the complexity and parties involved, which included the appointment of contradictor lawyers to present the court with counter-arguments where necessary.

Unpaid debts to Prospero

Although the liquidators are optimistic regarding the return of all/most creditor funds, there remain some unclaimed (and probably unrecoverable) debts owed to the company.

BRI’s investigations identified that the Company’s business was operated in parallel with a related entity, Prospero Global LLC, an offshore (Saint Vincent and the Grenadines) arm of Prospero. The accounting records indicate that the Company paid certain expenses of Prospero Global LLC, including MT4 licenses, IT expenses and payroll costs. Preliminary enquiries indicate those costs may total $800K or more. There is no evidence of the Company being reimbursed, and therefore this represents an outstanding debtor claim. The former management have not responded meaningfully to BRI’s enquiries, and the exact quantum of the debtor or the capacity of Prospero Global LLC to repay is currently unknown.

Employee claims

The liquidators estimate the total priority (employee) claims to be around $1.2M to $1.3M, subject to final adjudication of claims. Based on recoveries to date, BRI determined there are sufficient funds to discharge employee creditor claims in full. As such, BRI intends to declare a dividend to employee creditors by 24 October 2025. This will include reimbursement of the claims funded by the Department and the outstanding superannuation. Any employee creditors who have not already done so, are required to lodge a proof of debt by 18 September 2025, otherwise they may be excluded from the forthcoming priority dividend.

Unsecured creditors

In respect of unsecured creditors, the total estimated claims have increased to $4.2M. The unsecured claims are comprised of trade creditors of $850K, ASIC levies and investigation claims of $440K, ATO net tax liabilities of $35K, landlord lease termination claims of $1.4M, former client damages claims of $1.2M and a contingency of $200K.

The liquidators anticipate that there will be sufficient funds available to declare a dividend to the unsecured creditors. However, the quantum of the return will be dependent on whether there is any recovery from the potential claim identified against Prospero Global LLC, as noted above, and the extent of valid claims in the unsecured creditor pool. Further updates will be provided as the Liquidation progresses.

The timing for any return to unsecured creditors (and thereafter shareholders) will be subject to the outcome of the public examinations, and whether any claim is to be pursued against Prospero Global LLC (likely via litigation). If no claim is pursued, BRI estimates that the Liquidation could be finalised within the next six to 12 months. Otherwise, litigation may extend the Liquidation at least one to two years, noting that Prospero Global LLC is registered in the Saint Vincent and the Grenadines jurisdiction. BRI also notes that that timeframe could also be impacted by further investigations from the various regulatory bodies (including ASIC, AFP, AFSA and ATO).