The Dubai government has shut down a foreign exchange trading firm 

The Dubai government has shut down a foreign exchange trading firm in Dubai pending further investigations.

Officials from the Department of Economic Development (DED) closed the offices of Exential Group in Dubai Media City last week and ordered it to cease trading.

The DED’s action followed complaints made by Exential’s customers, who claim they have yet to receive returns owed to them for several months.

The company allegedly told investors it could more than double their investments from forex trading. On its website, it says it requires a minimum investment of $25,000.

However, comments posted in a Facebook group purporting to have been set up by disgruntled Exential clients suggest that investors who have tried to close their accounts have been waiting for funds due for almost a year.

Some people in the group claim to have invested their life savings – in some cases as much as $50,000 – in multiple Exential accounts.

The company issued a statement on social media last week claiming that the office closure by DED was “normal practice”. The statement wrote: “The office was visited by DED and was ordered to close the office in result to [sic] the complaints which were submitted to DED by clients.

“We are working to resolve this situation at the earliest and we will be back to normal operations as soon as possible.

“This is normal practice by DED and will be resolved by us as we are committed to carry on the business. Any other information that states anything else is not accurate. We urge you to remain calm as we are working to resolve the issue.”

A spokesperson for Exential Group said in an emailed statement to Arabian Business: “Please be informed that concerning the event that has occurred on 18th July, the Department of Economic Development has carried out their protocol owing to the numerous complaints they have received from our clients.

“We request you to please bear with us, as Exential is sorting out the current situation and will notify you at the earliest once we resume normal operation.”

The DED confirmed the action taken but declined to provide further information, saying that it is “working on the issue” and expects to provide an update within the next fortnight.

In 2013, Pakistani businessman Malik Awan was jailed for two years after his Ponzi-style foreign exchange trading scheme MMA Forex collapsed, with investors reportedly losing millions in the fraud.

Source: Arabian Business – Authorities close down Dubai forex trading scheme

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