Effex Capital seeks further extension of time to respond to complaint by FXCM customers

Maria Nikolova

Effex Capital and its CEO John Dittami seek another extension in the Nguyen v. FXCM Inc et al case – a class action on behalf of FXCM’s customers who traded on the “No Dealing Desk” platform during the 2010-2016 period.

The New York Southern District Court continues to deliver updates regarding the legal actions against FXCM. The law firm representing John Dittami and Effex Capital, the company implicated in the exit of FXCM from the US retail FX market, has requested another extension of time to respond to the complaint in the Nguyen v. FXCM Inc. et al case.

A quick reminder – the case in question is a class action on behalf of FXCM’s customers who traded on the “No Dealing Desk” platform during 2010-2016. The plaintiffs, lead by Vantalie Nguyen, allege that they suffered harm as a result of FXCM’s relationship with Effex Capital, LLC as a liquidity provider. The class action has as defendants Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc, FXCM Holdings, Dror Niv, William Ahdout, as well as Effex and its principal.

According to a Letter Motion, seen by FinanceFeeds, lawyers for Effex and its CEO are now requesting further extension of time to respond to Plaintiff’s complaint to September 1, 2017. This is the second time Effex and its CEO request extension – the Judge assigned to the case had already granted them one to July 14, 2017.

The Plaintiff’s counsel has consented the relief, which raises the chances that it will be granted.

Whereas the lawyers for Effex and its CEO mention no reason for the extension request, we can speculate that this has to do with another case around FXCM – Effex Capital, LLC et al v. National Futures Association et al. Effex is targeting NFA and is asking for a preliminary injunction against the Association that should see it remove a news release about the settlement between US authorities and FXCM. Effex also requests that NFA removes the complaint against FXCM, involving Effex, and/or amends it accordingly.

The briefing schedule on the motion for preliminary injunction has been extended, giving time to NFA to respond by July 24, 2017. An oral argument hearing is reset for August 9, 2017.

We can speculate (only speculate) that Effex Capital and Mr Dittami would like to base their further action on the developments in their lawsuit against NFA. If NFA removes the complaint against FXCM from its website, this will undermine the evidentiary support for the Nguyen case.

Read this next

Digital Assets

Valkyrie pulls back on Ether futures merge with Bitcoin ETF

Valkyrie Funds LLC will suspend the purchase of Ether (ETH) futures contracts for its Valkyrie Bitcoin and Ether Strategy ETF (BTF.O). Additionally, the firm will unwind any positions in Ethereum that it has already acquired.  

Digital Assets

Hong Kong police arrest 18 in $1.5B billion JPEX fraud

The investigation into the JPEX crypto exchange scandal continues to unfold as Hong Kong and Macau police arrest four more individuals. These arrests, which include individuals considered “relatively close to the core” of the scandal, bring the total number of detentions to 18.

Digital Assets

Gemini tells Dutch users to withdraw assets by November 17

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, announced that it will cease providing services to customers in the Netherlands, citing regulatory requirements imposed by the country’s central bank.

Digital Assets

SEC puts BlackRock, Valkyrie, and Bitwise Bitcoin ETFs on hold

The U.S. Securities and Exchange Commission has delayed its decisions on several bitcoin exchange-traded fund (ETF) proposals, leaving many in the crypto industry feeling pessimistic for any future blessing from the agency.

Digital Assets

Ripple backs out of Fortress Trust acquisition

Ripple has decided to cancel its planned acquisition of Fortress Trust, a custodian company, less than a month after initially announcing the agreement.


France regulators blacklists 21 FX brokers, FuturBTC

France’s financial markets regulator, the Autorité des Marchés Financiers (AMF), today shed light on several unregulated forex brokers representing their offering under several brands. Notably, the AMF has identified only one crypto-assets provider in its latest warning.  

Digital Assets

Flare and Arkham Collaborate for Enhanced Decentralized Data Access

Flare’s blockchain for decentralized data acquisition integrates with Arkham’s Intelligence Platform, offering users advanced analytics and actionable on-chain insights.

Industry News

iFX EXPO International 2023 Successfully Concludes

The most talked about financial event of the year took place in Limassol, Cyprus.

Retail FX

Plus500 Forex Garners Market Attention In The Latest Expert Ranking

Securing the 58th spot in Traders Union’s Best Forex Brokers of 2023 ranking, Plus500, despite its cautionary overall score of 6.3 out of 10, stands out for its stringent regulatory compliance, user-centric WebTrader platform, and a commendable focus on account security, though it lags in providing advanced trading tools and trust management features.