Banc de Binary 11m Dollar Fine
Liverpool Football Club
Following on from their recent CySEC fine of €350,000 the Banc de Binary 11m dollar fine has now put the broker into the big time with a further fine from the U.S. authorities. Banc de Binary is the sponsor of Liverpool Football Club so it will be interesting to see what their reaction to this latest fine is.
U.S. Binary’s Legality
In the U.S. the only way that binary options can be offered legally is via a binary options exchange, such as Nadex or Cantor, as the Over-the-Counter method in general is deemed open to abuse. The U.S. authorities have accused Banc de Binary of taking net deposits of $11m from 6,614 U.S. customers between 2011 and 2013, hence one assumes the value of the fine of $11m. Furthermore, Banc de Binary’s supposed office was in fact a ‘virtual office’ in New York’s Trump Tower, according to their website, creating in effect a form of subterfuge intended to mislead the client.
Banc de Binary $11m Fine
The agreed settlement is made up of $7.1m in disgorgement and restitution, $2m and $1.95m in civil penalties to the CFTC and U.S. SEC respectively. Of this money a $9.05m fund will repay Banc de Binary clients. Oren Laurent, the founder, will pay $150,000 of the $11m. Nevertheless, a Banc de Binary spokesman was quoted as saying: “We look forward to putting this behind us. We thank the U.S. agencies for their professionalism during the course of this matter.” which no doubt the U.S. agencies really, really appreciated!
Further detail can be found at the Wall Street Journal.