Kings Capital Holdings, a local investment and trading firm owned by former parliamentarian Alhan Fahmy, is seeking legal recourse to unfreeze the company's bank accounts.

The foreign-exchange trading firm recently became mired in scandal after the Maldives Monetary Authority (MMA) and the Bank of Maldives (BML) alleged it was running a massive-scale Ponzi scheme.

Mr. Fahmy, who acts as the chairman of the firm, has since denied all allegations and claimed that the state-backed financial institutions were attempting to tarnish the reputation and goodwill of him and his company.

He is demanding legal remedy with a case filed at the Maldives Civil Court in an attempt to unfreeze the bank accounts as well as claim for damages sustained by the company for the duration its accounts have remained frozen.

Bank of Maldives (BML) froze the accounts of Kings Capital Holdings on 10th March, after it was advised by both the central bank and the Capital Market Development Authority (CMDA).

The former MP's company recently became riddled with suspicion of running a Ponzi scheme following its rise in notoriety for promising extravagant returns in short periods.