Figure broker (formerly Freedom finance)
Russia
Central Federal District of the Russian Federation
Moscow
123112, 1st Krasnogvardeisky proezd, 15, office 18.02
Content |
Assets
History
2022
Loss of 2.1 billion rubles
According to the results of 2022, the "broker figure" received a loss of 2.1 billion rubles as a result of currency revaluation, as well as due to the sale of Kazakhstan's Freedom Finance to the former parent Freedom Holding Timur Turlov.
Another factor that took the company's performance into the red was the deal to sell 90.1% of the shares of the Kazakh joint-stock company Freedom Finance. The company's reports indicate that the transaction was non-market in nature and a loss of 2.4 billion rubles was recorded on it, writes Frank Media.
Freedom Holding Sale at Book Value
In early December 2022, it became known that the Russian business of Freedom Holding was sold at book value, which turned out to be lower than the holding's expectations.
The transaction on the sale of the Russian bank and the investment company Freedom Finance took place when assessing the asset in the amount of the equity capital of the business, that is, in the amount of funds in its accounts and the value of its assets... Of course, it seemed to us that the business that we are building should be valued above the residual value. And we had the hope that everything that we create costs more than the funds in our accounts and the real estate that we owned, "Timur Turlov, head of Freedom Holding, told RBC.
The amount of the transaction, which the company went to due to sanctions risks in the Russian financial sector, amounted to $140 million, the buyer was the deputy director of the investment company Freedom Finance Maxim Povalishin. After the sale was completed, the company and the bank began to operate under the Zyfra brand, the newspaper recalls. According to the terms of the deal, Freedom Holding will receive $33 million from Povalishin directly in money (probably so much is planned to be raised from the sale of the holding's shares).
As noted by RBC independent economist Andrei Barkhota, at the beginning of 2022, the net assets of Freedom Finance IC amounted to 13.4 billion rubles, and the capital of a subsidiary bank - 1.5 billion rubles. The indicative price of the transaction amounted to about 8.5 billion rubles. In favor of discounts to value, according to Barkhota, there is a significant amount of market risk associated with the impairment of investment assets, as well as a slowdown in the growth of the client base simultaneously with a decrease in the average investment check against the background of market fluctuations.
According to Turlov, the holding does not exclude the possibility of returning to the Russian market if international relations with the country are restored. However, all business in Russia will have to start from scratch.[1]
Questions to customers about the origin of their funds
Broker Freedom Finance from November 14, 2022 begins to ask customers for information about the origin of funds that are received and withdrawn from their accounts. Typically, such measures are used to withhold customer funds.
Change of name to "Zyfra broker"
On October 25, 2022, the renaming of the investment company Freedom Finance was announced. The new name is "Zyfra Broker." Freedom Finance Bank will operate under the Zyfra bank brand.
 | "Zyfra" is a simple name directly associated with digitalization as the main trend in the development of the industry in recent years, the company said in a statement quoted by Kommersant. |  |
The rebranding reflects a changing business paradigm, the company added. The strategy implies development into a digital ecosystem consisting of an investment company, a bank, a management company and a leasing company united by a single infrastructure.
The rebranding of Freedom Finance became known a few days after the sale of Freedom Holding's Russian assets to Maxim Povalishin, who was the co-founder of Freedom Finance in Russia, was announced.
According to Frank Media, Maxim Povalishin will use the proceeds from the sale of Freedom Holding shares, which, in turn, were received by him "through options and grants."
Maxim Povalishin, who has been a member of the board of directors of the investment company and the supervisory board of the bank for several years, will replace Timur Turlov, the founder of Freedom Finance, who is leaving their composition, as chairman of these governing bodies.
Povalishin, in a conversation with Frank Media, speaking about the reasons for the redemption of Freedom Holding's Russian business from Timur Turlov, noted that he "perfectly understands this business," knows all the pros and cons.
| | As soon as it became clear that the separation of foreign and Russian business by Freedom Finance was inevitable, he himself suggested that Timur buy it out. I had a grant from the company, received several years ago in the form of Freedom Holding shares, he said.[2] | |
Plan to sell the company to Maxim Povalishin for $33 million
Freedom Holding Timur Turlov in October 2022 announced that he had agreed to sell the Russian investment company (IC) Freedom Finance, as well as Freedom Finance Bank to Deputy General Director of IC Maxim Povalishin. The deal is to be approved by the Russian Central Bank, after which it is expected to be closed "in the coming months."
Maxim Povalishin intends to acquire Russian business for $33 million. In addition, the transaction will have a non-cash part - the top manager will be assigned the holding's obligations to the Russian divisions for another 6.6 billion rubles (about $107 million).
Timur Turlov - the new owner of Freedom Finance
In early June 2022, it became known about the departure of the American company Freedom Holding from the Russian market. She sells her assets in the Russian Federation to the founder of Freedom Finance Timur Turlov.
| | We do not see the opportunity to maintain Russian business within the American holding due to the ban on any investments in Russia for American residents, as well as due to the large number of restrictions on transactions with unfriendly non-residents, Timur Turlov said in a conversation with Reuters. | |
According to the entrepreneur, at the first stage he will buy out Russian business within the framework of $35 million in the capital of Freedom Finance in Russia for $35 million in the capital of two Kazakhstani insurance companies that became part of the holding on May 18, 2022.
| | The (Russian) business itself will be preserved, since we have many clients and settlements in Russia and there is an interesting development strategy. But Russian business will exist independently of the holding, "Turlov explained. | |
At the second stage, Freedom Finance will change its brand and will be sold to Russian top management. Transaction parameters by early June 2022.
Thus, the Russian business will be preserved, Turlov emphasized, noting that he "has many clients (about 163 thousand at the end of March 2022), payments in Russia and an interesting development strategy." But Freedom Finance will continue to exist independently of the American holding.
Timur Turlov expressed confidence that the separation of Russian companies from Freedom Holding Corp. will have a positive effect on all participants in the transaction and will allow the holding to maintain correspondent relations with foreign counterparties. The amount of capital of FRHC will also not undergo changes, since two Kazakh insurance companies were directly integrated into it recently, he added.[3]
2021: Eighth place among brokerage companies by number of clients in Russia
2020
The head of the company confirmed the leakage of customer data
On December 25, 2020, the head of Freedom Finance Timur Turlov on his Instagram page confirmed the leakage of these clients of the investment company. He explained that unknown persons attacked the segment of the internal network and stole part of the data from the local machines of several employees in Russia. The machines belong to the employees of a Russian broker providing access to the Russian stock market, and almost the entire package of stolen data is dated 2018.
The criminals gained access to the database by sending a phishing letter to one of the employees. He opened the message, despite a security warning. As a result, scanned copies and a number of orders on paper, a number of reconciliation reports with AML/FT databases and about 400 files on recognizing investors as qualified fell into the hands of attackers. They "definitely did not get" access to CRM, to back-office reports, to data from the trading platform and customer passwords, the head of Freedom Finance assured.
According to him, almost no customers who opened accounts in the United States were affected, Freedom Finance began to do this in 2019. International clients of the broker were not affected either.
| | However, we screwed up and let some of our Russian customers down. I am very ashamed of everything that happened... We will contact all clients as soon as possible, whose data has been compromised and will tell you about which documents were in the public domain. We will give recommendations on any minimization of risk... Of course, now we have completely cleaned the network and all local machines, have already rebuilt it and are convinced that the data is no longer leaking, the financier said. | |
Turlov believes that the system was hacked to blackmail the company with publicity in the media and extort money. However, Freedom Finance did not cooperate with the criminals and decided to admit the mistake.[4]
12 GB of data 16.8 thousand customers and employees of Freedom Finance put up for sale
On December 24, 2020, it became known about the leakage of data from clients and employees of the investment company Freedom Finance. Ashot Hovhannisyan, founder of the DLBI data leak intelligence service, was the first to draw attention to the "merged" database.
A source close to the Central Bank told RBC that the regulator is aware of what happened. The publication writes that the seller of the database declares the presence of information in it 16.8 thousand customers, 450 of whom are qualified investors. In total, the seller has 12 GB of files.
The ad contains a "probe" of the database with information about 50 clients, available to everyone after registering on the site. The "probe" indicates passport data and the address of residence of customers, account numbers and amounts on them, but there are no telephone numbers in it.
Ashot Hovhannisyan says that the trial version of the database contains customer data with accounts for $100 thousand - $2 million, including account balances from various banks, contracts, applications and other documents.
Also, according to the seller, the database contains "information from computers of department heads, traders and system administrators. Many passwords from various services, including Freedom Finance Bank and broker Zerich.
Freedom Finance itself denies the possibility of leakage of payment data. The company is conducting an audit.
| | Unambiguously, this database does not and cannot contain personal logins/passwords from trading programs, any payment information, data on balances in brokerage accounts, on transactions performed or cash flows. All this information is reliably protected, and a very limited circle of people has access to it, with a special control system, Freedom Finance said in a statement. | |
The company added that security measures have been "radically" strengthened.[5][6]
1990-2001
Freedom Finance Bank LLC (formerly Ohabank) has been operating in the financial market since 1990. License of the Central Bank of the Russian Federation No. 1143. The Bank provides a wide range of services for individuals and legal entities, specializes in settlement and cash services, lending to corporate clients, raising funds from individuals in deposits, as well as operations in stock markets.
The investment company Freedom Finance is a team of Russian specialists with experience in international financial markets. Since 2001, invests in the shares of brands in the world, participates in the IPO of technology companies and conducts low-risk operations with a range of financial instruments. The Company exercises trust management of assets and also provides its clients with the possibility of independent trading in the stock market.
Notes
- ↑ Ex-owner of Freedom Finance spoke about the deal to leave Russia
- ↑ Freedom Finance renamed to Digital
- ↑ U.S.-listed Freedom Holding Corp founder says he will buy Russian unit
- ↑ Timur Turlov on Instagram
- ↑ The Network leaked the data of the clients of the broker "Freedom Finance"
- ↑ Notification for clients of IC "Freedom Finance"
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