Regulators Crack Down, But Who Are They Really Hurting?
The British FCA has put two more binary options brokers under provisional liquidation following reports of fraud. This comes only weeks after the regulator shut down Magnum Options for the same complaints. The brokers are accused of operating without a license, using misleading information, making false claims of success and low risk to lure in unsuspecting victims. The operators are Right Corp Limited and Curve Point Limited, both now listed as dissolved on the business registry. Since both were operating out of virtual offices as front companies for businesses headquartered in off shore financial havens I wonder who or what it was they actually busted.
Along with this comes a warning of another scam emerging in the binary options world, the recovery room. Recovery room scams claims to be able to help recover funds lost to binary options scams, even funds lost in trading. They guarantee success, but for a fee, and have now begun to target traders involved with Right Corp and Curve Point. The FCA points out that there are legitimate recovery services but they make no claims of success and do not charge up front fees.
Dragon Options Loses Its License
Traders with Dragon Options and Tao Trade will be interested to hear that the operator of those brands, Dragon Options LTD, has renounced its CySEC license. This move comes in the wake of massive crackdown across the industry and a suspension for the operator earlier this year. In March CySEC suspended their license and gave the broker 10 days to fix issues with banking services and client funds that has yet to be resolved. We can only assume that the voluntary loss of licensing is in result of an agreement between Dragon Options and CySEC. CySEC has advised anyone waiting for a withdrawal to contact them with their complaint.
Australia Nabs Two Scammers!
Australian regulator ASIC has announced the capture and conviction of two binary options scammers. Jana Jaro and Jackson Lawrence Malcolm Capper were charged and convicted with running a binary options scam for most of 2015. The two operated under the businesses of Astra Group PTY LTD and Old Cambridge PTY LTD in order to defraud Australian citizens. They used false information to incorporate the two businesses and then open and operate a “boiler room”. A boiler room is a call center set up to cold call and pressure would-be traders into depositing with a broker. The two hired and then trained a staff to sell trading packages in which the two would open and manage trading accounts with Binary.com. They succeeded in scamming over a half million AUD.