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Banc De Binary Robot Trading

Banc De Binary
Type Private
Industry Binary options
Founded 2009

Key people

Oren Shabat Laurent (CEO)[1]
Abraham 'Abe' Cofnas, Head Analyst

Banc De Binary was an Israeli financial firm with a history of regulatory issues on three continents.[ane] [two] On January nine, 2017, the company announced that it would be closing due to negative printing coverage and its tarnished reputation. The firm as well surrendered its brokerage license with the Cyprus Securities and Exchange Commission (CySEC) removing its ability to legally merchandise in the European Marriage. Its 2014 revenues were reported as $100 million.[3] [4] [5]

It sold binary options on avails including strange exchange. It was barred from accepting U.S. customers in August 2013 later being charged with several offenses by the Commodity Futures Trading Commission (CFTC) and U.S. Securities and Exchange Commission (SEC) in a civil lawsuit.[half-dozen] [7] The visitor agreed to pay $11 million in restitution and fines to settle the adapt.[eight] [9] It is also banned from accepting customers in Canada, Commonwealth of australia, New Zealand, and Israel.[8]

The company operated an online trading website through which customers could buy binary options, predicting whether the price of a certain commodity will become upwardly or down in a specific fourth dimension menstruation, equally short as 60 seconds.[x] [11] [12] Banc De Binary was an associate of SpotOption Exchange which sets the cost of the option. The price of the choice was not a market price, merely was set by SpotOption Exchange itself.[13]

The Wall Street Journal described it as "a website that allows people to bet on the price of gilded, oil or stocks".[xiv]

Operations

The visitor allowed people to wager on changes in the cost of various avails by using a pricing platform provided by an Israeli company, SpotOption, and customised by Banc De Binary. Customers did non own the asset just instead predicted whether its price would rise or fall.[15] Banc De Binary's office was to create accounts for customers equally a reseller of SpotOption's services. The company offered several kinds of options; customers could make predictions of the price of over 200 global assets including commodities, stocks, indices, and currencies using several variations of the trading platform including classic binary options,[16] long term options, and lx second options,[17] and pairs trading. Co-ordinate to an advertizement for Banc De Binary, its CEO Oren Shabat Laurent was a founder of SpotOption, the house that fix the option prices.[18]

In Jan 2017, Selection.fm, a make associated with Banc De Binary, was named by BuzzFeed equally the operator of a baroque scam known as the "Hawking code".[19] [20] The scam used a fake news site, purporting to be a part of CNN, and a fake interview with Stephen Hawking. According to the fake news site, Hawking developed a trading algorithm which would in effect transfer wealth from the elevation 0.one% of the world's wealthiest people to the other 99.9%. The site led to a trading site operated by Pick.fm, headquartered in the Caribbean, that guaranteed trading profits using binary options. A 2d journalist traced the scam to Banc De Binary, which did not respond to his inquiries. Hawking's part at Cambridge University denied any connection to the scam.[21] [20] [19] Oren Shabat Laurent was named in a lawsuit as the CEO of Option.fm, but he has denied it.[22]

History

Banc De Binary Ltd., based in Republic of cyprus, along with ET Binary Options Ltd., BO Systems Ltd., and BDB Services Ltd., based in Israel and the Republic of Republic of seychelles, collectively conducted business internationally as Banc De Binary. The organization was founded by Oren Shabat Laurent, a 31-year-old (equally of 2016) American and Israeli citizen who lives on the outskirts of Tel Aviv. Laurent owns 50% of Banc De Binary, and was also the sole possessor or fifty% shareholder of ET Binary Options Ltd., BO Systems, Ltd., and BDB Services, Ltd.[23] He claims to accept graduated from New York University and be a existent estate investor in Israel.[24]

  • In an interview the company's founder stated that the firm was founded on January 15, 2009,[25] and that earlier, he had worked at "NAF Hedge Funds" and "Infinity Private Investment Funds", which he described as hedge funds in New York.[26] In an advertizing, the company likewise claims to have been founded in Seychelles in 2008.[27]
  • In an interview, the company's founder also claimed that past June 2011 the company had around 20,000 client accounts,[28] In a 2014 court case Banc De Binary claimed that information technology "is a small company, with approximately 60 employees".[23]
  • An article in the Independent on Sunday described it equally a "leading Urban center trading firm", although it did not have an function in the Metropolis of London, and the address the visitor gave was a virtual office space with no physical presence.[29] [30]
  • On 7 January 2013, Banc De Binary was licensed as an investment house by the Cyprus Securities and Exchange Commission (CySEC).[31] [32] Investment firms regulated past CySEC must demonstrate to CySEC that their activities comply with the laws of any non-Eu countries where they do business concern.[33] [34] According to the company, its operations "exterior of the European union" are conducted by BDB Services Limited (formerly known every bit BO Systems Limited), which is incorporated in the Seychelles.[35]
  • The Financial Services Register maintained by the UK's Financial Behave Authority states that from 25 Feb 2013 the company "is authorised or registered by ... [CySEC] ... and may exist discipline to limited regulation by the Financial Conduct Authority".[36] The company had similar licences in Deutschland,[37] Italia, France,[38] and Kingdom of spain.[39] In accord with the European Markets in Financial Instruments Directive (MiFID), the company "passported" into almost all member states of the EEA, even though clients based in other countries might receive nothing if the visitor collapsed.[ citation needed ]
  • In June 2014, an advertising on a freelance employment website offered more than $ten,000 for "crisis management" of the BdB page on Wikipedia.[40]
  • In 2016, CySEC fined the locally based company (Banc De Binary Ltd). CySEC stated that "The settlement reached with BdB, for the possible violations, is for the corporeality of €350,000. The Company has paid the amount of €350,000". However, the reputational amercement and legal ramifications were pregnant for BdB's Cypriot based operations.[41] [42]

Closing

A company official announced on January ix, 2017 that the visitor would be closing because of "consistently negative press" coverage. "Information technology's simply not worth the tarnished reputation. I don't see how we tin can go on operating under such scrutiny and public image," said the official.[3] [4] [5] The firm also surrendered its brokerage license with the Cyprus Securities and Exchange Commission (CySEC) on January 9, 2017, removing its ability to legally trade in the European union. The business firm remains nether supervision by CySEC regarding previously incurred obligations and the formal closing of the firm.[43] [1] Reuters reported that the visitor's headquarters had been airtight, the visitor's name removed, and a "for hire" sign placed on the building.[5]

The Times of Israel reported that some industry insiders were skeptical that Banc De Binary was really closing, only was rather relocating and irresolute its name. One client who is owed €170,000 ($180,000) due to an August judgement from the Cyprus Ombudsman was withal awaiting payment equally of January 11, 2017.[44] Banc De Binary'due south banking concern accounts are at Piraeus Bank Cyprus Limited, Due west East Bank, Credit Suisse, Wirecard Bank AG and TBI Banking concern EAD co-ordinate to the Australian Securities & Investments Commission.[44] [45]

Regulatory issues

SEC and CFTC enforcement actions

On June 6, 2013, Banc De Binary was charged by both the Commodity Futures Trading Committee and the Securities and Exchange Commission for alleged violations of U.S. financial regulations. The CFTC warned more than generally of "fraudulent schemes involving binary options and their trading platforms".[ten]

On July 30, 2013, the SEC obtained a preliminary injunction from U.S. District Court for the District of Nevada to prevent and freeze whatever further trading with U.South. customers.[seven] [46] Charges filed on Baronial vii, 2013, stated that Banc De Binary "may be criminally liable under the federal RICO statute".

Banc De Binary at offset refused to appear in court in the Us for depositions.[23] Banc De Binary claimed to have an office in New York City at Trump Belfry, merely this was in fact a virtual role space with no significant physical presence.[47] Trading and offering financial services to U.South. consumers without gaining a license first from U.S. regulators is illegal, as it would hateful the customer would accept no protection. The visitor also claims on its site at its Uk Companies House report[48] to have an office at 1 Rex Street, EC2, in the Urban center of London, but this, like its New York Urban center address, was a virtual office with no physical presence.[49] Banc De Binary'south Great britain Companies House study says that they are based in Republic of cyprus. Despite this, Banc de Binary was brought to trial in Nevada. Banc De Binary retained the services of Snell & Wilmer in Reno, Nevada, in relation to U.South. charges. This followed an before hearing where in the absenteeism of whatsoever representation from Banc De Binary, charges were filed via email and by post.[23]

Binary trading in the Usa is legal, just it needs to be done through properly registered and regulated exchanges such as NADEX.[50] [51] [52] Both the CFTC and SEC working filed civil suits confronting the company, seeking disgorgement, fiscal penalties and other preliminary and permanent injunctions against the company.[53] [54] In civil suits filed in Nevada, the SEC and CFTC criminate that the company was offer off-exchange traded options to U.South. customers and unlawfully solicited US customers to buy and sell options. The CFTC and SEC's suit too alleges that it did not limit its offerings to eligible contract participants, contrary to U.S. regulations;[10] [55] a fully regulated banker would consummate credit checks on customers to ensure that those with low finances did not trade with them. Amongst the allegations made by the SEC was that Banc De Binary induced people with limited funds, including one unemployed person with less than $1000,[56] to open up accounts. In response to the U.South. charges the company put out a statement that fabricated no mention of its legal problems, but instead incorrectly implied that they were in negotiations and that they had voluntarily left the U.S. market place, when in fact the SEC had taken an injunction out to stop them.[57]

In a bulletin posted on its website, the visitor stated that

[...] Banc De Binary is voluntarily discontinuing its operations in the The states. The United States Article Futures Trading Commission and Securities and Exchange Commission have asserted that Banc De Binary is not permitted to offer its binary choice products to U.S. residents without registering with those agencies. We are currently in discussions with the CFTC and SEC most these issues, but in the interim, nosotros take discontinued all business with U.S. residents.

On Jan 26, 2016, Banc De Binary agreed to a courtroom guild to pay $11 meg in restitution and penalties to settle this example.[viii] The settlement understanding requires Banc De Binary to refund the losses of The states customers. Refunds are being handled by the National Futures Clan as court-appointed monitor.[58] Banc De Binary is permanently barred from doing any business in the U.s. or with US persons.

In 2018 Leonel Alexis Valerio Santana and Frank Gregory Cedeno were charged in a U.S. courtroom for criminal fraud. They allegedly impersonated SEC employees promising to help victims of Banc De Binary'southward scams obtain repayment of lost funds. Instead, they allegedly defrauded the victim by taking $1.3 million more.[59] [60]

In July 2018, the CFTC filed a complaint against Michael Shah and his company Zilmil asking for disgorgement and fines totaling $75 one thousand thousand. Shah and Zilmil advertised trading schemes by Banc de Binary and fifteen other companies to traders in the U.S. even though none of the companies were registered to trade with U.S. customers. Shah also offered automated trading systems, including the "Millionaire Coin Automobile" which Shah knew, according to his emails, did not produce the advertised results.[61]

Eu

Within the European Wedlock, the company was regulated by the CySEC. On vii April 2014 CySec announced that they had fined Banc De Binary x,000 euros after it had "concealed textile data in its request for say-so CIF submitted to the commission in Baronial 2012, namely curtained the being of close links betwixt it and another company".[62]

Investor advisories

As of Oct 2013, the company was rated "F" by the United States' Better Business organisation Bureau (BBB) because 31 complaints had been made confronting it, including 9 of which were unanswered. The BBB written report also wrote that the "site essentially allows investors to gamble on the future toll of something at a point in time".[63]

It appears on the Securities and Exchange Commission'southward "Listing of Unregistered Soliciting Entities That Have Been the Subject of Investor Complaints".[64]

In Canada, information technology is listed on the Ontario Securities Commission's Investors Warning List of "companies that appear to be engaging in activities that may pose a risk to investors".[65]

Afterward receiving "at least ane complaint from a Québec investor who traded through Banc De Binary's platform and was unable to recover his investment", the Autorité des marchés financiers (AMF) warned investors nearly the company. It noted that a bonus of l% of the opening eolith is available, only customers who have the bonus are not immune to make withdrawals until they have fabricated trades equal to 20 times their initial eolith. The AMF besides pointed out that, due to the "all or nothing" nature of binary options, an investor who wrongly predicts market motility volition lose his entire investment. Banc De Binary is not registered with the AMF. The AMF also, similar the CFTC, included a more than full general warning about the risk of fraud in binary options trading in the same press release.[66]

References

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  26. ^ "Oren Laurent, Financial Services". Archived from the original on 2013-09-16. Retrieved 2013-10-24 . He obtained employment in various retail Wall Street Firms and then worked in NAF Hedge Funds. He later transferred to Infinity Private Investment Funds.
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  33. ^ "Get Out! CySEC Bans FX Firms From Accepting Not-European union Clientswork=Forex Magnates". August 2013. Archived from the original on 2013-08-06. Retrieved 2013-ten-16 . [...] brokers which operate under the CySEC license [...] will no longer be able to solicit business concern [...] outside of the European Matrimony, unless a potential client [...] who resides in a not-European union fellow member land tin provide written authorization from the domestic fiscal markets regulator in the nation which that person is resident [...]
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  35. ^ "Terms of Employ". BO Systems Limited (Effective from January 7, 2013 until March 5, 2013) and/or BDB Services Limited (Effective from March five, 2013) (hereafter the Visitor) [...] The trading address of BDB Services Express is situated at Suite 106, Premier Building, Victoria, Mahe, Seychelles. [...] Outside of the European Union, this website is operated past BDB Services Limited (Incorporated in Seychelles) [...]
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  41. ^ Leap Rate: CySEC fines Function II: Banc de Binary settles for €350,000, 24option parent fined €156,000
  42. ^ CySEC Lath Determination regarding Banc De Binary Ltd
  43. ^ "Advice". Republic of cyprus Securities and Exchange Commission. January eleven, 2017. Archived from the original on January 11, 2017. Retrieved Jan 11, 2017. {{cite spider web}}: CS1 maint: bot: original URL condition unknown (link) In Greek.
  44. ^ a b Weinglass, Simona (January eleven, 2017). "Major Israeli binary firm, Banc de Binary, lays off employees, said to be shutting down". Times of State of israel . Retrieved January 24, 2017.
  45. ^ "Banc De Binary Ltd / BDB Services Ltd". Australian Securities & Investments Commission. Retrieved Jan 24, 2017.
  46. ^ "Banc de Binary Ltd. (Release No. LR-22767; August 1, 2013)". Sec.gov . Retrieved 2013-eleven-27 .
  47. ^ "Securities and Exchange Commission vs. Banc De Binary Ltd, complaint" (PDF). Banc de Binary maintained a virtual office on Wall Street
  48. ^ "Companies House WebCheck". Wck2.companieshouse.gov.great britain. Archived from the original on 2008-12-29. Retrieved 2013-10-18 .
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  55. ^ "SEC Full Complaint" (PDF) . Retrieved 19 June 2013.
  56. ^ "Banc de Binary Ltd. (Release No. LR-22718; June vii, 2013)". Sec.gov . Retrieved 2013-x-xviii .
  57. ^ Banc de Binary Ltd. (Release No. LR-22767; August 1, 2013). Sec.gov. Retrieved on 2013-ten-xvi.
  58. ^ Court-appointed monitor for United states victim restitution claims: "Banc de Binary Restitution Information". National Futures Association. March eighteen, 2016.
  59. ^ Raymond, Nate (Jan 23, 2018). "U.S. charges two over fraud featuring bogus SEC employees". Reuters. Retrieved Jan 26, 2018.
  60. ^ Saks-McLeod, Andrew (January 25, 2018). ""Wanna get large, sir?" Burger-flipping SEC impostors pretend to help Banc de Binary fraud victims". Finance Feeds . Retrieved January 26, 2018.
  61. ^ Nikolova, Maria (xiii July 2018). "CFTC seeks to impose monetary penalty of $56m on binary options marketers". Finance Feeds. Retrieved xiii July 2018.
  62. ^ "CySEC fines Banc de Binary €10,000 for concealing links between it and another visitor". LeapRate. 2014-05-26. Retrieved 2014-05-31 .
  63. ^ "BBB Business Review". Archived from the original on 2013-10-17. Factors that lowered the rating for Banc De Binary include: 31 complaints filed confronting business Failure to respond to nine complaints filed against business
  64. ^ "Public Warning: Unregistered Soliciting Entities". Securities and Exchange Commission. Archived from the original on 2013-02-23. Retrieved 15 October 2012.
  65. ^ "Investors Warning List". Ontario Securities Commission. Archived from the original on 2013-x-17. Retrieved 13 Jan 2013.
  66. ^ "Binary options – AMF Cautions Most Solicitations by Banc de Binary". Lautorite.qc.ca . Retrieved 2013-08-17 .

External links

  • SEC Press Release nigh charges filed confronting Banc De Binary
  • SEC Litigation Release
  • CFTC Charges "Prediction Market place" Proprietor Banc De Binary with Violating the CFTC's Off-Exchange Options Trading Ban and Operating every bit an Unregistered Futures Committee Merchant
  • CFTC investor alert about binary options trading

Banc De Binary Robot Trading,

Source: https://en.wikipedia.org/wiki/Banc_De_Binary

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