[ccpw id="5"]

Home.forex news reportUS Court Orders Trading Firms to Pay $451M Over Binary Options Fraud

US Court Orders Trading Firms to Pay $451M Over Binary Options Fraud

-


A federal court has dealt a major blow to an
international fraud network that deceived investors through fake binary options
platforms. The U.S. District Court for the Northern District of
Illinois ordered five offshore firms and three individuals to pay over $451
million in restitution and penalties after they were found guilty of defrauding
customers worldwide.

The ruling marks a significant step in U.S.
regulators’ efforts to clamp down on illicit online trading schemes. Between
2014 and 2019, the defendants operated fraudulent binary options trading
platforms under names like BigOption, BinaryBook, and BinaryOnline.

Through websites, emails, and phone calls, they
convinced customers—many in the U.S., that they could earn significant profits
trading binary options. In reality, most investors lost their money.

The fraudsters went to great lengths to appear
legitimate. They misrepresented their identities, financial expertise, and
locations while using aggressive sales tactics to lure victims.

Customers were promised “risk-free trades”
and bonuses that came with hidden restrictions, making it nearly impossible to
withdraw their funds. The firms also manipulated trading platforms to ensure
that clients would lose money on trades.

The court found the defendants guilty of fraud and
other violations of the Commodity Exchange Act (CEA). They are now required to
pay $112.9 million in restitution to victims and an additional $338.7 million
as a civil monetary penalty. The ruling also permanently bans them from trading in
CFTC-regulated markets or registering with the commission.

Affected Companies

According to a statement by the CFTC, the convicted
entities include Yukom Communications Ltd. (Israel), Linkopia Mauritius Ltd.
(Mauritius), Wirestech Limited (Marshall Islands) doing business as BigOption WSB
Investments Ltd. (Multiple jurisdictions) doing business as BinaryBook, and Zolarex
Ltd. (Marshall Islands) doing business as BinaryOnline

The case originates from an August 2019 complaint
filed by the Commodity Futures Trading Commission (CFTC). One defendant, Yakov
Cohen, previously reached a separate settlement with the court, agreeing to
return $7 million in illegal profits.

In recent years, the agency has intensified its
crackdown on binary options scams, warning investors about the risks associated
with unregulated online trading platforms.

Many fraudulent firms operate under different names
and move funds across multiple jurisdictions to evade detection. The regulator
has urged investors to conduct due
diligence before engaging with any online trading platform.

A federal court has dealt a major blow to an
international fraud network that deceived investors through fake binary options
platforms. The U.S. District Court for the Northern District of
Illinois ordered five offshore firms and three individuals to pay over $451
million in restitution and penalties after they were found guilty of defrauding
customers worldwide.

The ruling marks a significant step in U.S.
regulators’ efforts to clamp down on illicit online trading schemes. Between
2014 and 2019, the defendants operated fraudulent binary options trading
platforms under names like BigOption, BinaryBook, and BinaryOnline.

Through websites, emails, and phone calls, they
convinced customers—many in the U.S., that they could earn significant profits
trading binary options. In reality, most investors lost their money.

The fraudsters went to great lengths to appear
legitimate. They misrepresented their identities, financial expertise, and
locations while using aggressive sales tactics to lure victims.

Customers were promised “risk-free trades”
and bonuses that came with hidden restrictions, making it nearly impossible to
withdraw their funds. The firms also manipulated trading platforms to ensure
that clients would lose money on trades.

The court found the defendants guilty of fraud and
other violations of the Commodity Exchange Act (CEA). They are now required to
pay $112.9 million in restitution to victims and an additional $338.7 million
as a civil monetary penalty. The ruling also permanently bans them from trading in
CFTC-regulated markets or registering with the commission.

Affected Companies

According to a statement by the CFTC, the convicted
entities include Yukom Communications Ltd. (Israel), Linkopia Mauritius Ltd.
(Mauritius), Wirestech Limited (Marshall Islands) doing business as BigOption WSB
Investments Ltd. (Multiple jurisdictions) doing business as BinaryBook, and Zolarex
Ltd. (Marshall Islands) doing business as BinaryOnline

The case originates from an August 2019 complaint
filed by the Commodity Futures Trading Commission (CFTC). One defendant, Yakov
Cohen, previously reached a separate settlement with the court, agreeing to
return $7 million in illegal profits.

In recent years, the agency has intensified its
crackdown on binary options scams, warning investors about the risks associated
with unregulated online trading platforms.

Many fraudulent firms operate under different names
and move funds across multiple jurisdictions to evade detection. The regulator
has urged investors to conduct due
diligence before engaging with any online trading platform.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

Pound to Euro Forecast: GBP/EUR Holds 1.20

February 14, 2025 - Written by Frank DaviesSTORY LINK Pound to Euro Forecast: GBP/EUR Holds 1.20 UPDATE: The Pound Sterling (GBP) was trapped in a...

Fed Logan (voting in 26): Next couple of months of inflation will be pretty important

The next couple of points of inflation will be pretty important.Even if get better data on inflation, should be cautious on ratesif labor market...

DPN3, the CluCoin and Goobers NFTs founder who gambled away investor funds, sentenced to 27 months in prison

Austin Michael Taylor, a.k.a. DPN3, confessed to investors in 2023 that he had lost their funds gambling on online casinos. Source link

TNB Tech Minute: Airbnb Looks to Expand Beyond Rentals

Plus, shares of sports-betting platform DraftKings hit a three-year high. And, Chinese e-commerce companies like Shein and Temu try to bypass Trump to keep...

Follow us

0FansLike
0FollowersFollow
0SubscribersSubscribe

Most Popular

spot_img