Spreadex Sues Robert Tchenguiz for £2m Over Spread Betting Losses

Spreadex is suing property tycoon Robert Tchenguiz for £2m ($2.5m) over his spread betting losses. The 62-year-old opened accounts with various spread betting operators as he was building a position in FirstGroup.

wagers began to turn south following the onset of the pandemic

The British businessman began focusing on the transport company back in 2019 as a US hedge fund was attempting to break up the firm. His wagers began to turn south following the onset of the pandemic, leading to Spreadex closing out the open spread bets. The total negative balance is £1.5m ($1.9m) and the operator charged 1% in monthly interest. The interest bill has passed the £580,000 ($723,994) mark.

In financial spread betting, people try to predict the direction that a given financial instrument will go without owning the underlying asset. Significant leverage is often involved.

Tchenguiz has had similar issues with other operators. Last year, the High Court ordered him to pay CMC Markets £1.3m ($1.6m), while he also settled a claim with IG Index. The businessman has labeled the traders as being opportunistic at a time when people were particularly vulnerable. A spokesperson for Tchenguiz said that he is willing to pay a fair amount, but not “the inflated amounts they say they are owed.”