Securities Law News

Israel-Based Binary Options Platform Is Massive Fraud, SEC Says

Oct. 10, 2019, 4:28 PM

The Securities and Exchange Commission filed a fraud lawsuit in the Eastern District of Washington accusing two Israel-based businessmen of running a massive scam through the web of “binary options” trading websites they operated.

Binary options are high-risk instruments that involve all-or-nothing bets on an underlying security’s chances of hitting a specified price. They’re widely considered to be closer to gambling than investing, and the FBI has warned that online versions are particularly susceptible to fraud based on identity theft and platform manipulation. Several European regulators have recently banned or restricted binary option trades.

Anton Senderov and Lior Babazara ran...

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