Banc De Binary Quits The USA (For Now)

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Major Israeli binary firm, Banc de Binary, lays off employees, said to be shutting down

Blacklisted and fined in several countries, company has voluntarily renounced its Cyprus regulation; some insiders speculate it will relocate to eastern Europe and operate under a different name

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Simona Weinglass is an investigative reporter at The Times of Israel.

Banc de Binary, one of the first binary options firms to be established in Israel, has reportedly shut down its Israeli call center and renounced its Cypriot license. The firm has been forced in the past by US courts to pay millions of dollars for illegally soliciting customers there. It was also fined last year by its Cyprus regulator and has been cited for illegal activity by regulators in Australia, New Zealand and Canada.

Reports in the Hebrew daily TheMarker and the trade publication Finance Magnates cited tighter regulation of binary options by the Cyprus Securities and Exchange Commission (CySEC) and increased media scrutiny of the company’s questionable practices as reasons for the shutdown. As of Thursday, the firm’s website was still operating.

The Times of Israel, which focused on Banc de Binary in an article last August, has been exposing widespread fraud in the Israeli binary options industry for the past 10 months. As a direct consequence of this reporting, the Knesset’s State Control Committee earlier this month held a special session to deal with the fraud, and demanded urgent police action against the fraudsters and expedited legislation to close down the entire industry. Israel’s securities authority has vowed to “eradicate” the fraud, which has seen victims worldwide fleeced out of billions over the past decade.

On January 9, CySEC announced that Banc de Binary, which is regulated in Cyprus and has offices in Israel, had voluntarily renounced its Cyprus registration, which allowed it to legally solicit European customers through the web site eu.bancdebinary.com.

The Cypriot securities regulator added that Banc De Binary Ltd “remains under the supervision of the CySEC until it settles its obligations arising from the investment services or/and activities that will lapse.”

At least one client of Banc de Binary who received a judgement in August from the Cyprus Ombudsman that the company owes him €170,000 ($180,000) is still waiting anxiously for his money.

The Australian Securities and Investment Commission has listed the banks where Banc de Binary keeps their money as Piraeus Bank Cyprus Limited, West East Bank, Credit Suisse, Wirecard Bank AG and TBI BANK EAD.

Is the company really shutting down?

Several sources with knowledge of Banc de Binary told The Times of Israel on Tuesday and Wednesday that reports of the company’s closure are true, and that many employees have been fired. Others were more skeptical. Posts on social media speculated about what this meant for the future of the binary options industry in Israel.

“Wow,” wrote one Israeli poster on Facebook, “Banc de Binary was one of the first and largest in Israel. I know how most people feel about Binary Options as being scam; etc etc. but this is a huge hit to the economy — to Ramat Gan.”

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Ramat Gan is a town adjacent to Tel Aviv which hosts dozens of binary options firms.

Other online commenters, presumably employed in binary options, lamented the closure as the beginning of the end of the binary options industry in Israel.

“You got what you wanted,” wrote one commenter in TheMarker, “Are you happy now? Thousands of unemployed workers, a drop in purchasing power, taxes that won’t be paid, service providers that will go bankrupt. But, hey, great job, you shut down binary options. Idiots!”

To which another commenter responded, “Sorry but I have no tears to shed for scammers who committed legal and moral crimes and who helped to generate anti-Semitism against Israelis and Jews.”

Some sources with knowledge of the binary options industry told The Times of Israel they did not believe Banc de Binary was shutting down for good, but perhaps rebranding. One woman had heard the company was relocating its call center to Romania while keeping other functions in Israel.

“I heard from my friend who worked there that they are doing a relocation to Europe but will continue to sell binary options,” a third source told The Times of Israel. “Maybe they will continue to work from Israel as well but will keep a low profile.”

The Times of Israel contacted ETBO Services, the company’s headquarters in Ramat Gan, to ask if they were indeed shutting down their entire operation. After repeated phone calls, a woman responded, “I cannot tell you. You have to call our legal department.”

No one in ETBO’s legal department could be reached prior to publication.

Banc de Binary first appeared online in about 2020. In the same year, a man by the name of Oren Shabat registered the Israeli firm E.T. Binary Options Ltd., which was the Israeli company that operated a call center and managed Banc de Binary. The company, which later changed its name to E.T.B.O. Services, is owned by Oren, Hezi and Lior Shabat, according to Israel’s corporate registry. A smaller portion of the company’s shares are held in trust for Yossi Almaliach, Ronen Tubul, Ohad Tzori and Yoram Menachem.

In March 2020, the company was ordered by a US court to pay over $11 million in restitution and penalties for illegally soliciting US customers.

John Berry, a senior lawyer for the US Securities and Exchange Commission, said in a May 2020 interview with BBC radio that not only had Banc de Binary sold ostensible financial products to investors without being licensed to do so, but it had also deceived those investors as well.

“We presented evidence to the court that Banc De Binary was telling US-based investors that Banc De Binary was actually based on Wall Street, and we had evidence of online chat discussions where a Banc De Binary broker would tell a US investor, ‘Hey, I live, you know, right down the street from Wall Street, I’ve got a Wall Street address, I work there,’ and so they had repeatedly lied to US-based customers about being in the United States and being based in the United States with a US address on Wall Street and a New York-based phone number.”

Regulators in Australia, New Zealand and Canada have issued warnings against Banc de Binary for illegal activity. Another brand that appears to be associated with Banc de Binary, Option.fm, has been blacklisted by financial regulators in Ontario, Hong Kong, Australia and New Zealand.

The company has faced an onslaught of media scrutiny in the last year, including articles in The Times of Israel as well as the British Daily Mail and Sunday Times newspapers. It is speculated that the Southampton Football Club in England dropped Banc de Binary’s sponsorships after being questioned on its association with the company by the media.

Banc de Binary was fined €350,000 ($370,500) by CySEC last January and has been under investigation by the regulator ever since. On November 30, the regulator instructed companies that they could no longer offer “bonuses” to clients whereby they are offered monetary incentives to continue trading but must achieve a certain high volume of trades before they can withdraw their money.

The Times of Israel has been exposing Israel’s largely fraudulent binary options industry in a series of articles since March, beginning with an article entitled “The Wolves of Tel Aviv,” and has estimated that the industry here numbers over 100 companies, most of which are fraudulent and employ a variety of ruses to steal their clients’ money. These firms lure their victims into making what they are duped into believing will be profitable short-term investments, but in the overwhelming majority of cases the clients wind up losing all or almost all of their money. Thousands of Israelis work in the field, which is estimated to have fleeced billions of dollars from victims all over the world in the past decade.

The Prime Minister’s Office in October condemned the industry’s “unscrupulous practices” and called for the entire industry to be outlawed worldwide.

Responding to The Times of Israel’s reporting on the widely fraudulent industry, on January 2, the Knesset’s State Control Committee held a hearing on the government’s failure to shut down binary options fraud. The committee chair, MK Karine Elharar (Yesh Atid) demanded that the police begin enforcement activity against fraudulent binary options firms in the next month and that the Israel Securities Authority urgently advance legislation to shut down the entire industry. A follow-up hearing will take place in February.

Despite these developments, the possible closure of Banc de Binary was a voluntary step taken in response to pressure from CySEC and the media, not a response to Israeli law enforcement, which has so far taken scant enforcement action against the industry. Even with the layoffs at Banc de Binary, more than 100 binary options companies are still operating without hindrance from within Israel’s borders.

As one woman posted on an Israeli Facebook page on January 10, “Worked at Banc De Binary? Looking for a new home? Regulated company looking for the BEST OF THE BEST.”

The Blog

Big news is the binary options industry: Banc De Binary is about to shut down. The company decided to close the binary options broker.

Banc De Binary was one of the first binary options brokers, however they never had a positive image. Banc De Binary has been fined by Cysec in the past (the fine was €350.000) and they also faced several lawsuits.

The company also had to pay $11 million to the US for accepting US customers a few years ago. The founder of BancDeBinary had to pay $150,000 in addition to the fines mentioned previously.

FinanceMagnates says that an insider confirmed the news. The insider said:
“Its just not worth the tarnished reputation. I don’t see how we can continue operating under such scrutiny and public image.”
According to the same site, all arrangements have been made to stop accepting new traders.

signupWe tried registering an account on their website and all we get is this message: Selected country is blocked. We tried it with several countries from the list.

The same insider concluded:
“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,”
We recommend you to withdraw all your funds as soon as possible. It would not be the first time when such a company disappears from one day to another without paying back the deposits.

UPDATE: This is the email all affiliates got today:
As you know, after much deliberation, BDB Group’s management has decided to cease its online activity effective as of January, 15th 2020. That means we are starting by shutting down our affiliation program immediately.
Another Source:
A company official has explained that all arrangements have been made to stop accepting new customers.
Mega-quake in the binary options industry: Finance Magnates has learned Banc De Binary, one of the biggest global providers, is shutting down its operations, winding down its business and leaving the binary options industry for good.

A high level official at the CySEC-regulated binary options provider has confirmed the news, explaining that the move was taken by the firm’s owners following the consistently negative press that the company faced over the past year.

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“It’s become the wild west in the past few months,” the 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.

Sponsorships and inquiries
Oren Laurent, Founder of Banc De Binary and Olly Dale, Commercial Director, Liverpool FC
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. The first signs of trouble could be seen last September after England premier league club Southampton revoked a sponsorship deal that it had signed with Banc De Binary only a few weeks earlier. The British football club didn’t elaborate on its reasons for backing off from the deal, but mounting pressure from local newspapers must have played at least some role.

Since its establishment, Banc De Binary has been a high profile binary options provider, even sponsoring Liverpool FC for one year. On the other hand, it was the center of few press inquiries, including a special report by Finance Magnates about the way UK tabloids were duped by a sophisticated affiliate program – Banc De Binary was one of the sites traders were being diverted to. Looking for iqoption platform review? watch online video.

The firm has been under the scrutiny of many regulators recently. Last February, the provider was forced to pay $11 million to US authorities after several years of investigations regarding the illegal targeting of US customers.

As part of the settlement Banc De Binary reached with the American Commodities Futures Trading Commission (CFTC), its founder had to pay $150,000. Just a month before, in January 2020, Banc De Binary faced another blow when CySEC fined it €350,000.
Comments:
– The question is what the customers will believe in after the “Binary Icon’s” total crash.. In trading with regulated companies only? – What if it will not save you? The company will pay fines, and will keep work illegally till will not close down.. In reviews? – BDB was on top of affiliates reviews.. Maybe in that the Binary Industry is globally fake?

– Fxpro will soon follow given the inability to repay the $40 million owed to Deutsche Bank since the SNB event took place and the failed IPO attempt.

– over 18 months ago. But unfortunately many publications are often too scared to go after brokers, even with blatant evidence that they are ripping off clients. Advertising revenue vs reporting the truth; one of the many conflicts of interests in this industry.

– Sorry, mate! BinaryWatchdog.org is just another of the plethora of websites that rubbishes their competition in order to tout their own BO scam op affiliates. Have you managed to make anything like the kind of profits that their (doubtless fictitious) poster-boys and poster-girls claim to have made? Am I surprised that your answer is no? Would I be surprised if you told me that you have only managed so far to lose money with these scammers (or to build up fictitious pofits that you will never be able to withdraw)? This whole industry is very sad and it’s criminal:

– this is what happens when you work as if you are not regulated and not follow the law cause the cost of the fine is covered by the amount you steal! and the regulator is after the regulated companies instead of the unregulated ones. close the banks and clearing companies for the unregulated and the regulated companies will be able to compete with law abiding rivals. it is simple but for some reason the regulators are afraid to go after the real criminals. it happened before in the gaming industry why cant it happen in the finance industry? is CYSEC corrupt?

– Yes @insider, CYSEC is made of people (and just a bunch of them are relevant executives). Those people have the ultimate authority to dictate who gets analyzed and fined, when, why, etc. Now put the huge money the “brokers” are “making” next to some of these key-people in the regulatory body and there you have it! Nothing you haven’t seen before. Corruption by definition. If i know how to kill a monster that size, so does CYSEC. The only effective way to live around financial monsters is riding them.

– They probably have a new brand on stand by to start pushing to the clients. It a multi million dollar industry, do you really think those guys will let go ? I doubt it, sooner or later, you will a new company in the market target the same Affiliates and clients

Banc de Binary Review

Banc de Binary have ceased all operations. Please visit our recommended brokers page.

Bbinary.com Binary Broker Review

Banc De Binary is one of the few binary options brokers with FSA regulation January 2020 and gave up the US satellite office. This makes them one of the former favorite US binary options brokers. They are known for their excellent customer service and positive reputation in the binary options trading community. We searched for complaints and while we did find our fair share, there was always a resolution and bbinary has maintained a positive reputation.

  • Official Website: www.bancdebinary.com
  • Headquarters: Cyprus
  • Phone Number: 800-656-6163
  • Email Address: [email protected]
  • Jan 20th, 2020 – BDB stops accepting new US traders as they are now regulated by CYSEC and are working with the CFTC. (reached a 400,000 trader milestone in late August, 2020. Received CYSEC Regulation 1/2020. One of 1st regulated brokers, leading to the CFTC Suing them back in 2020.
  • Trading Platform Used: SpotOption
  • Above average returns
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  • High value traders call Banc De Binary their binary options home

Is Banc de Binary a scam?

The short answer to that question is no. Banc De Binary is not a scam site. They are an industry leader and are leading the charge for out and out full regulation by CYSEC, the Cyprus Securities and Exchange commission. You can feel comfortable making deposits at Bbinary and know that the trades there are legit. We do warn you to be cautious of accepting a bonus offer. Accepting a bonus offer makings withdrawing your money quite challenging. You have to meet a series of terms and conditions in order to withdraw if you accept a bonus. If you refuse the bonus you can deposit and withdraw as you need.

Banc De Binary Home Page – Sign Up Here

Simple, Easy To Use

What do people think is a scam about Banc De Binary? What makes people think that they are not legit?

So we take a look at what some of the traders have been complaining about. A “minor” complaint in our eyes are the people griping that they can’t get their withdrawal done when they want to. Upon further explanations most admitted that they didn’t have the appropriate paperwork on file to start the process.

A more experienced trader offered up these tips which we agree with and feel that if you followed them you’d have success withdrawing as well.

Steps To Get Your Account Set Up With BancDeBinary.com

The best way to not experience withdrawal issues with any broker is to do the following:

1) Register with the broker. Wait until you complete the steps below to deposit)
2) Send your government ID, electricity bill, and credit card info (Blocking first 12digits and the 3 digit code in the end)
3) Request for a “Approved for Deposit & Withdrawal confirmation” from your account manager.
Ask her or him to email you with the above statement.
4) Deposit your amount after you receive your email confirmation
5) Withdraw without any problems in the future.

That being said we move onto the second complaint. Slightly more major in our minds yet a solution has to be out there. (I just haven’t found it yet.) Complaints of spreads being different. Some people offered up advise of taking a screenshot and presenting it to bbinary.com if you feel you’ve been cheated. Others suggested watching for spreads that are tolerable. It seems to happen frequently but if its a small spread it is easier to deal with.

Side note: A spread is the difference in price between your charts and the price they offer. Remember, when you are making the trade they offer you the trade at their terms and you can take it or not. It’s transparent even if there is a difference in price between your charts and their offer.

Cherry stepped in and gave a bit of insight on the spreads matter as well as her comments to the Banc de Binary Customer Service. You can read the full forum discussion here. It’s important to understand that these are seasoned traders sharing their long term opinion on where to trade.

Deposit Information

  • Minimum Deposit: $250
  • Deposit Methods: Credit Card, Electronic Payment, Wire Transfer
  • Credit Cards Accepted: Visa, Mastercard, Maestro, Amex, Diner’s Club International
  • Electronic Payments Accepted: MoneyBookers
  • Minimum of $1000USD for Wire Transfer

Bonus Information

Banc de Binary has up to a 100% sign up bonus with a standard account. For the nitty gritty details you’ll want to head over to bancdebinary.com now as depending on the amount you plan to invest will determine the different maximum bonus offer they will give you. Be sure you understand the terms and conditions of accepting a bonus before doing so.

Types of Options Information

  • Types of Options: High/Low
  • Expiry Times Available: 60 Seconds, Hourly
  • High/Low Payout Percentage: 72-90%

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