Binary option: Difference between revisions

Revision as of 13:33, 28 February 2025

Revision as of 06:39, 23 April 2025

Line 152:

;Fraud

In 2016 ''[[The Times of Israel]]'' ran several articles on binary options fraud. "The wolves of Tel Aviv: Israel's vast, amoral binary options scam exposed" revealed that the industry is a scam.<ref name="israeltimes1" /> A second article describes in detail how a binary options salesman fleeced clients. "According to one ex-employee of a firm that employs over 1,000 people in a high-rise office building in [[Tel Aviv]], losses are guaranteed because the 'dealing room' at the binary options firm controls the trading platform — likeplatform—like the crooked ownership of a rigged [[casino]] manipulating the [[roulette wheel]]".<ref name="israeltimes2">{{cite news | url =http://www.timesofisrael.com/ex-binary-options-salesman-heres-how-we-fleece-the-clients/ |title = Ex-binary options salesman: Here's how we fleece the clients | work =The Times of Israel |author1=Weinglass, Simona |author2=Horovitz, David |name-list-style=amp| date=April 7, 2016 }}</ref>

In July 2016 the Israeli binary option firms Vault Options and Global Trader 365 were ordered by the [[United States District Court for the Northern District of Illinois|U.S. District Court for the Northern District of Illinois]] to pay more than $4.5 million for unlawful off-exchange binary options trading, fraud, and registration violations. The companies were also banned permanently from operating in the United States or selling to U.S. residents.<ref>{{cite news|url=http://www.cftc.gov/PressRoom/PressReleases/pr7414-16|title= Federal Court Orders Israeli Web-based Firms, Vault Options, Ltd. and Global Trader 365, to Pay More than $4.5 Million for Unlawful Off-Exchange Binary Options Trading, Fraud, and Registration Violations|date=July 28, 2016|publisher=Commodities and Futures Trading Commission}}</ref>

Line 164:

In September 2017, the FBI arrested Lee Elbaz, CEO of binary options trading company Yukom Communications, upon her arrival in the United States. They arrested her for [[wire fraud]] and conspiracy to commit wire fraud.<ref name="Matts092417">{{cite news |last1=Staff|first1=Tori|title=FBI arrests Israeli binary options CEO as she disembarks El Al flight at JFK|url=https://www.timesofisrael.com/fbi-arrests-israeli-binary-options-ceo-as-she-disembarks-el-al-flight-at-jfk/|work =The Times of Israel|date=September 24, 2017|access-date=September 24, 2017}}</ref> In 2019, Lee Elbaz was found guilty and sentenced to 22 years in prison.<ref>{{cite news |title=Former CEO of Israeli Company Sentenced to 22 Years in Prison for Orchestrating Major International Binary Options Fraud Scheme|url=https://www.justice.gov/opa/pr/former-ceo-israeli-company-sentenced-22-years-prison-orchestrating-major-international-binary/|work =Department of Justice|date=December 19, 2019|access-date=August 19, 2022}}</ref>

In February 2019, the FBI arrested Austin Smith, founder of Wealth Recovery International, after his arrival in the United States. Smith was arrested for [[wire fraud]] due to his involvement as an employee of Binarybook.com.<ref>{{Cite web|url=https://www.timesofisrael.com/israeli-american-claiming-to-help-binary-options-victims-pleads-guilty-to-fraud/|title=Israeli-American claiming to help binary options victims pleads guilty to fraud|first=Simona|last=Weinglass|website=www.timesofisrael.com}}</ref>

===Malta===

Line 219:

== External links ==

*[httphttps://www.BinaryOptionsFraudbinaryoptionsfraud.ca/ Canadian securities regulators website]

*[https://www.cftc.gov/ConsumerProtection/FraudAwarenessPrevention/CFTCFraudAdvisories/fraudadv_binaryoptions.html CFTC investor alert]

*{{cite news|last1=Levy-Weinrib|first1=Ela|title=Regulator seeks blanket binary options ban|url=http://www.globes.co.il/en/article-regulator-seeks-blanket-binary-options-prohibition-1001175186|access-date=May 6, 2018|publisher=[[Globes (newspaper)|Globes]] English|date=February 2, 2017}}