Ocean Leonid Investments to Wind Down UK Operations Amid Scrutiny and Licensing Issues

Ocean Leonid Investments, a hedge fund allegedly connected to Iranian oil trader Hossein Shamkhani, has notified its employees at its office on Curzon Street in London’s Mayfair of plans to wind down its UK operations, according to a report by Reuters. Sources familiar with the matter revealed that the decision to cease operations in the UK was communicated through letters and phone calls, citing licensing restrictions as the primary reason for the shutdown.

Although most of Ocean Leonid’s assets and liabilities are based in the United Arab Emirates, some funds were reportedly funnelled through London for trading purposes. However, the specific licensing issues that triggered the closure remain unclear, according to the sources.

According to the Financial Conduct Authority’s (FCA) registry, Ocean Leonid’s employees had been authorized to engage in client dealings in the UK until 26 November. The hedge fund declined to comment on the situation, and the FCA did not provide any additional clarification when asked.

This development comes amid growing scrutiny of the hedge fund, which was recently suspended by the Dubai International Financial Centre (DIFC), a financial free zone in Dubai. Ocean Leonid is also under investigation by the U.S. Treasury Department. The firm previously indicated that it was in “active discussions” with the DIFC regarding the suspension and cooperating with authorities to resolve the matter.

A Bloomberg investigation in October raised concerns that Ocean Leonid may be part of a broader network controlled by Hossein Shamkhani, a prominent oil trader and son of a close adviser to Iran’s Supreme Leader, Ayatollah Ali Khamenei. However, representatives of Ocean Leonid have strongly denied any links to Shamkhani, asserting that he is not involved with the firm. Shamkhani’s legal team has similarly dismissed any connection between the oil trader and the hedge fund. The unfolding situation highlights the increasing regulatory and legal challenges that Ocean Leonid faces as it works to disentangle itself from these ongoing investigations.