Israel has been witnessing rising cases of binary options scams taking away billions. Lee Elbaz, the CEO of Yukon, was held guilty by the US FBI for committing wire fraud in September 2017. If you aren’t aware of what Yukon is, it is the Binary Book and Big Option parent company, two of the most well-known binary options frauds that the financial world has witnessed.
The Binary book was listed on the CFTC’s Red list of Illegal Traders in April 2016 for soliciting residents of the US. The FPA Traders Court declared a guilty vote against the company in May 2017. It also warned the traders not to trade their money using Binary Book or Big Option, leading to severe consequences. These brokers worked on the old mechanisms of a generic binary options scam.
Firstly, they didn’t possess any license number to deliver investment advice. That was a major red flag. Second, the scammers copied most of the current website’s content from other renowned websites. The website represented a colossal scale of plagiarized content. They worked towards leveling up the promotional game where everyone spotted their ads appearing on every financial website out there. They positioned spokespersons who stated that Big Option and Binary Book are the best binary options traders to come into existence.
Their salespersons called up potential investors and tricked them into starting smaller trades. Their fraud exchange scheme made sure that their investments grew massively soon enough. After that, these salespersons would call them up and ask them for an enormous investment amount. Sooner or later, the investors ended up investing more money. Now, they stand deprived of the funds or have double the amount. But when the amount doubled up, they were incapable of withdrawing it. Yes, that’s right.
They were not permitted to remove their funds, and customer service became unresponsive, which led to the FBI investigation on the case, and the companies finally shut down. Israel could finally put an end to it.