ASIC stated: As expected, retail clients have not made any losses (or profits) from trading binary options with licensed issuers since the product intervention order took effect. The regulator pointed out that during the period of the ban, 68% of wholesale clients lost money trading binary options in that period as the ban does not…
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The court found that Fingerhut, Barak and Valariola have fraudulently solicited customers through emails, websites, and video sales letters by promising free access to reportedly successful automated trading systems which traded in binary options involving commodity interests and digital assets. The claims the defendants made misrepresented hypothetical and fictitious trading results as real results, and…
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Moreover, it has been alleged that the salespeople would inform potential investors that the only time the broker made any money was when the investor made money. This technique was used to gain additional trust for the trading information that the brokers were providing. Once the investors believed that the brokers only made a profit…
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The raids are said to have resulted in the confiscation of around 43 memory devices, 68 computer systems and 19 mobile phones, and a number of valuable items and finance-related documents. It was reported that authorities were able to detain five people thought to be connected to the group, two of which were foreign nationals.…
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Olson has admitted to being affiliated with Blue Bit Banc and similar bodies from around April 2014 to March 2018. He would sell binary options to Blue Bit customers during this period by utilising aliases and watching over sales staff within Blue Bit’s Manhattan-based office. Olson also admitted to misrepresenting Blue Bit trade profitability, manipulating…
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ASIC Commissioner Cathie Armour said: Binary options’ product characteristics make them incompatible with investment or risk management use by retail clients. ASIC’s product intervention order will protect retail investors from these harmful products at a time of heightened vulnerability. According to the Commission, retail clients’ net losses from trading binary options are estimated at around…
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Robots in the fintech industry The fintech industry, as its terminology betrays, is of course known for embracing new technology and artificial intelligence. AI and robotics have been evolving year after year and are now enabling fintech companies to provide services that once could only be carried out by teams of individuals, increasing their competitive…
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The order also resolves a CFTC enforcement case from October 2019, which found that Szatmari and a business partner created and disseminated fraudulent solicitations that led 25,000 customers to open and fund trading accounts that generated $3.8 million in fees for Szatmari and his partner, while customers lost most or all of their funds. The…
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The CFTC claims that the Cartu and Peretz brothers directed individual brokers to solicit US customers with falsely represented financial expertise, compensation structure, physical location and identity. The brokers also mislead their customers that the offered binary option transactions were profitable, when in reality, the majority of customers lost money. Ryan Masten of Austin, Texas…
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At the time of the verdict, the court did not order restitution but allowed the government leave to gather evidence and determine the amount. In addition to the Spot Option database which the government exclusively relied for information on the fraudulent activities, it now added declaration of Michael J. Petron, a certified public accountant and…
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