Homepage > News > The CFTC imposes a $7 million fine for binary options fraud

The CFTC imposes a $7 million fine for binary options fraud

The American Commodity Futures Trading Commission (CFTC) has announced that the American District Court for the South Florida District has issued a decision against a Florida resident and citizens of other countries, defendants for involvement in binary options and cryptocurrency scam.

According to the press release, Daniel Fingerhut, a Miami resident, and Itay Barak, Tal Valariola and Israel’s Digital Platinum Limited (DPL), are required to pay $ 7 million in return of illicit profits and fines for violating CFTC regulations. In addition, Fingerhut, Barak and Valariola were banned from trading and completing registration documents.

A large number of defrauded customers

According to court documents, defendants are accused of dishonestly tricking “tens of millions of clients” and potential clients into opening accounts and investing in binary options and cryptocurrencies that were operated by unregistered brokers.

The orders find that Fingerhut, Barak and Valariola created, disseminated and/or facilitated the use of fraudulent solicitations in emails, websites, and video sales letters promising free access to purportedly successful automated trading systems that traded on behalf of clients in binary options involving commodity interests and digital assets. These solicitations misrepresented hypothetical and fictitious trading results as real results, and used fabricated customer testimonials. – the CFTC emphasized.

The authorities are also conducting proceedings against three other entities. The CFTC stressed that the Israeli Securities Regulatory Authority and the Bulgarian Financial Supervisory Authority had assisted in the investigation.

Forex scam

Last month, the CFTC filed a civil suit against Abner Alejandro Tinoco and his company Kikit&Mess Investments for the misappropriation of investors’ funds. A man from Texas-raised and embezzled over $3.9 million. The regulator specified that the alleged perpetrator had been conducting his unfair activity from at least September 2020. He obtained funds from a minimum of 61 clients, whom he assured of profitable investments in the Forex market and in cryptocurrencies.

Author: Izabela Kamionka

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.


Last news:

german economy

German Business Climate Dips, Indicating Looming Extended Recession

A successive drop in German business morale in June indicates an impending lengthier recession for ...
ropa naftowa

Nigeria’s Oil Market Faces Crisis as Half of Output Goes Unpurchased

The Nigerian oil market is currently facing a significant surplus, with nearly half of next ...
Week for Wall Street

Stock Futures Fall, Investors Eye Powell’s Testimony

Stock futures are indicating a downtrend ahead of the Federal Reserve Chair, Jerome Powell's second ...

Euro Maintains Position Despite Russia’s Drastic Reduction in Use – ECB Report

Despite Russia's significant reduction in its use, the Euro stood its ground as the world's ...

Add a comment

Your email address will not be published. Required fields are marked *


Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top