Singapore-based SixCapital is in trouble after angry and worried investors filed a police complaint against the online foreign exchange trading company as they fear to have lost millions of dollars of investments, says a report by The Straits Times.
SixCapital had “promised returns as high as 18 per cent a year but stopped making payouts around June”. Investors have not been able to access the performance reports of the fintech firm, which uses Big Data and analytics to make currency trades.
Around 1,000 investors and employees had collectively invested millions of dollars into SixCapital, which calls itself SixCap.
The trouble in the company apparently started in earlier this year, when it emailed its clients on June 8 that its banker, OCBC Bank, had informed it could no longer support its banking accounts. SixCap had been trying to open accounts with other banks since May 25, but could not do so because of the stringent KYC (Know-Your-Customer) processes. Following this, the company was flooded with withdrawal requests from investors.
In November 10, SixCap informed investors that it was discontinuing two of its products, Tagg and B’Data, which earned yields for investors through foreign exchange trading. In a letter to investor, the firm said their principal would be paid back over a 24-month period beginning February 2018.
The same letter also informed investors of the abrupt resignation on Oct 9 of SixCap Chief Scientific Officer Abdalla Kablan and 13 of his key IT staff. The mass resignations brought SixCap’s operations to a halt, impacting its product ‘Ricebowl’, a system being developed and refined with the help of Dr Kablan.
Some of the investors filed reports with the police and the Commercial Affairs Department last month demanding an investigation into SixCap’s transactions.
Started in 2009 by Patrick Teng, SixCap uses Big Data and analytics to make foreign exchange trading simpler and more profitable. Its proprietary Ricebowl engine generates actionable data on the currency markets that is used for both trading and risk management. Additionally, it runs courses in foreign exchange trading, using its own methodology to empower precise, reliable trading.
SixCap rose to fame in December last year when it had its livery painted on an AirAsia jet to promote Tagg’s launch in the Indonesian market.