Category: Regulation

ASIC ban
September 05, 2022 BY Alan Sayer

ASIC's Binary Options Ban Extended

The Australian regulator also released a report summarising the impact of its ban. Before the initial ban, ASIC stated that between 74% and 77% of active retail clients lost money trading binary options, with retail client accounts making net losses of $14 million in aggregate. In addition, they explained that loss-making retail client accounts made…

Read more
CFTC fine
November 18, 2021 BY Steffy Bogdanova

CFTC issues a $7 million penalty in binary options fraud scheme

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…

Read more
SEC fraud
July 14, 2021 BY Alan Sayer

SEC files charges in binary options fraud case

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…

Read more
Bulgarian authorities raid binary options fraud group
May 14, 2021 BY Steffy Bogdanova

Bulgarian authorities raid binary options fraud group

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.…

Read more
April 07, 2021 BY Steffy Bogdanova

Binary Options fraud results in $1 million charge for Glenn Olson

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…

Read more
April 01, 2021 BY Steffy Bogdanova

ASIC bans Binary Options sale to retail clients

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…

Read more
September 03, 2020 BY Steffy Bogdanova

BeeOptions, Glenridge Capital and Rumelia Capital charged in a $165 million Binary Options fraud case

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…

Read more
August 10, 2020 BY Steffy Bogdanova

Lee Elbaz ordered to pay $28 million in binary options fraud case

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…

Read more