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.
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.
Between 2014 and 2019, the defendants reportedly operated fraudulent binary options trading platforms under names like BigOption, BinaryBook, and BinaryOnline. The ruling marks a significant step in U.S. regulators' efforts to clamp down on illicit online trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term schemes.
Court Ruling and Financial Penalties
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 CFTC mentioned.
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.
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