As per the course of the queries by the ASX,by my understanding, it was discovered in the financial period ending 2018 that:
(Please keep in mind that ISX is supposed to be offering "know your customer services", AML, etc)
ISX had 6 customers, which allegedly contributed to 96.5 percent of the revenue for the relevant period. Two are legit scammers that have been litigated by ASIC and another one, Fcorp have been stopped by german regulators. Another one, Nona, has the same address as Fcorp so probably is the same company so probably also dubious as hell. Both of them are flagged by ASIC as potential scams. Another one, Corp destination was not registered for GST so presumably it has never offered any goods nor services; it was conceived in March 2018 and its ABN only became active in June 2018 and then stopped being ISX customer right after. From what I can see they came into existence within months (just before performance shares hurdles), never offered any good nor services, dumped a bunch of money and then left.
So that is 5 out of 6...
So what bank did they use for transaction and settlement? Only the biggest fraud bank in Danish history, KAB.
(Please keep in mind that ISX is supposed to be offering "know your customer services", AML, etc)
If we exclude the two scammers that accounted for around 26 or so percent revenue for the period. We were left with four customers. So what did they pay ISX for? Financial services? Something related to GPTV? KYC? No, they paid for trading platform licence. The same trading platform licence that ISX presumably paid for and deployed and yet claimed to have never had a copy when asked by the ASX.
So at least they got paid right?
When asked by the ASX to provide invoices, banks statements, remittance advices...
ISX claimed that were not given remittance advices.
(Please keep in mind that ISX is supposed to be offering "know your customer services", AML, etc)
From what I can see, the ASX also find it difficult to reconcile invoices, etc with payments in banks statements. From what I understood, it seems that ISX was not paid directly by the customers and instead they got paid indirectly by substracting money originating from Hong Kong lanhai, etc:
When asked who they are? ISX says that they don't know.
(Please keep in mind that ISX is supposed to be offering "know your customer services", AML, etc) My believe is that the suspicion alone warrant the suspension pending the outcome of investigation. I think it would an eggregious moral crime if the ASX didn't suspend ISX.
