- ”It’s become the wild west in the past few months,” a Banc de Binary spokesperson said of the binary options sector
- Company has already made arrangements to stop accepting new customers
- Other binary options firms accused of bilking customers out of millions of dollars and even telling staff to “rape customers out of their cash
- Banc de Binary lost its sponsorship with Premier League football club Southhampton
One of the world’s largest binary options firms, Banc De Binary, is shutting its doors for good.
Finance Magnates broke the news Monday.
“It’s become the wild west in the past few months,” a company official told Finance Magnates. “Its just not worth the tarnished reputation. I don’t see how we can continue operating under such scrutiny and public image.”
The official explained that all arrangements have been made to stop accepting new customers. “All client funds are being sent back to their original source. We’re just waiting for the official announcement from the board to begin the process. They are literally about to kill a five hundred million dollar company, but even worse – the icon of the binary option industry,” he concluded.
The binary options industry has come under fire in recent months for a series of negative stories. One in particular highlighted how a former US secret agent helped get back $2 million they were bilked out of by unscrupulous binary options companies.
This past September it was revealed that two binary options businesses based out of Israel specifically targeted the vulnerable, telling staff to “rape clients out of their cash”.
The binary options involved were AA Option and Inside Option.
Both companies were alleged to have lured victims by scam emails the followed up with high-pressure salespeople persuading responders to invest small sums of money such as £250. A second team would follow up in order to pressure these clients into investing thousands more and even charging their credit cards without authorization.
Banc De Binary was founded 2009 by Oren Laurent and at its peak employed hundreds of employees. Its headquarters are located in Israel, with an office in Limassol Cyprus.
Signs of trouble with Banc De Binary appeared in September at around the same time the AA Option and Inside Option scams were made public. At that time, Premier League football club Southampton revoked a sponsorship deal that it had signed with Banc De Binary only a few weeks earlier.
Last February, Banc De Binary was forced to pay $11 million to US authorities after it was found to be illegally targeting customers in the States.
As part of the settlement Banc De Binary reached with the American Commodities Futures Trading Commission (CFTC), its founder had to also had to pay $150,000.
- Aaron Goldstein, Gamlbing911.com