CFTC Charges Crypto Scammers and Binary Options Solicitor for $15 Million

The Commodity Futures Trading Commission (CFTC) has charged American and Israeli companies for promoting crypto and binary options investment programs scam and defrauding customers.

08 May, 2020 | AtoZ Markets – Several Israeli companies are spreading binary options and cryptocurrency scams to American investors. These fraudulent entities often claim to users that they could finance their lifestyle with the money they earned from trading online.

CFTC Charges Crypto Scammers and Unveils case details

The Commodity and Futures Exchange Commission (CFTC) has charged the US and Israeli companies executives with an alleged $ 15 million scam involving crypto and binary options.

However, the latest CFTC charge also includes two significant scams, binary options and cryptocurrencies. Binary options scams carried out between October 2013 and November 2016. Cryptocurrency scams carried out between November 2013 and August 2018.

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Also, the CFTC charged Israeli company Tal Valariola and Itay Barak. Both operated a marketing company called Digital Platinum Limited (DPL). They also allegedly "helped and encouraged" All in Publishing (AIP), an offshore company that has engaged in fraudulent binary options in the United States.

Over 51,917 new users opened a binary options account and deposited nearly $ 13 million in total due to the misleading marketing campaign. Besides, 8,043 users opened a digital asset trading account, deposited more than $ 2 million in total.

Daniel Fingerhut charged for fraudulent Binary Options Solicitations

The CFTC Charges Crypto Scammers, besides the regulator also names a Florida resident, Daniel Fingerhut, who has been accused of creating fraudulent solicitations related to binary options of the AIP. Fingerhut also managed the affiliate marketing program of Digital Platinum Defendants during this period. Brokers promise that they could use algorithmic trading software or a "bot" that would trade for them. CFTC also said:

Fingerhut has hired, directed and/or supervised at least four people in Florida and one person in Israel. They write solicitation emails and distribute them in bulk through autoresponders.

The CFTC also charges the defendants with four counts. It including option fraud and CTA fraud, seeking various injunctions prohibiting them from any activity related to the commodities trading. Moreover, the commission asked the court to order the disgorgement.

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