The Truth Behind Binary Options Fraud in Israelby Pinky Tyagi Blogger & Writter
Tel Aviv, in the center of Israel has come under much scrutiny recently as it is fast becoming recognized as home to the fraudulent and unregulated binary options industry – an industry fleecing helpless victims through rigged trading platforms and the refusal for client withdrawal.
Binary options is potentially one of the biggest and most sophisticated scams in the history of Israel’s economy, with an estimated 95% of binary options companies residing in Israel.
Quick Facts about Israel’s Binary Options Fraud
- In the past decade, the
country has witnessed a huge increase in
binary options trading scams. The binary options scam has stolen billions of dollars
from unexpecting victims who have invested in these trading platforms.
Financial experts and politicians are now waking up and bringing this
issue to light.
recently passed a law ultimately banning all binary options from operating
out of Israel, giving the industry three months to wind down operations. After
that, any individual involved in binary options faces up to two years in jail.
- This multi-billion-dollar
fraudulent industry is estimated to be worth around 5-10
billion USD per year, with fraudsters promising lucrative short-term
investments, only to defraud their clients through manipulated trading
platforms and confusing terms and conditions. It is understood that these
binary options scam artists are now closing their operations in Israel only to
expand and move to countries with little to no regulation, such as Bulgaria and
- Binary options brokers specialize
in convincing clients to deposit money in exchange
for high returns, promising upto 60% return on your investiment. In an ideal
world, this would be a fantastic investment prospect, but in the binary options
world, this is simply a dream.
- The trading
platforms are allegedly rigged to ensure that the only parties profiting are
the binary options company and the scam broker. Initially, traders are led to
believe that they are making money from their ‘winning trades’, when in actual
fact, this is all a façade created to encourage them to deposit more money.
- Platform providers supply the
binary options industry with the technology that allows clients to trade. These
platform providers can charge up to 50% revenue share to each binary options
company, thus providing further incentive for clients to lose trades. This was really
brought to light with the recent arrest of a binary options CEO at JFK airport
in New York. The Federal Bureau of Investigation (FBI) indictment stated that
both the binary options brand and the platform providers were caught
corresponding which each other to ensure clients placed losing trades.
- Victims from all over the
world have lost huge sums of money, with
some even resorting
- Countries such as the UK, Australia,
Canada and others have enforced strict
laws banning both binary options trading with their citizens and binary options
Due to the highly fraudulent nature of the binary options industry in Israel, recovery companies specializing in recouping victim’s money are taking action and stepping in where the authorities will not.
Created on Dec 8th 2017 00:10. Viewed 660 times.