Plus500's shares lost 67% in this week!
Shares of forex broker Plus500 fell 67% in the London Stock Exchange this week, after the news that the trading firm suspended ‘several’ of UK accounts while it carried out anti-loundering checks. After the news came out on Monday, shares fell sharply by 44% and continue it’s fall slowly until Friday’s collapse, after the hedge fund Cable Car Capital wrote in their blog, that they are shorting the company and that the Plus500 shares worth is only 76 pence. Plus500 suspended its shares after brutal Hedge Fund attack and another 28% fall on Friday. The shares were suspended at price 252.00 pence on Friday.
After the suspension, the Plus500 release the statement giving more detail on the anti-money laundering checks that have been going on. It reveals that the Financial Conduct Authority (FCA) forced the company the appoint someone to go over its anti-money laundering procedures back in January, which is what led to the account freezes.
Plus500 said 40 people are currently working to get suspended customers back online but the process will likely take weeks. It’s also not taking any new customers until it has agreed on appropriate anti-money laundering checks with the consultant appointed to review its systems. The company said there will be a further update at its annual general meeting next Wednesday, May 27. Until then, I think that their shereholders will not sleep well. Last week the company had a market capitalization of $1.3 billion, so this week wipes out around $1.0 billion of their value. Wooow!