January 13, 2020 | AtoZ Markets – A class-action lawsuit was filed against the IQ Option trading platform in the Indian city of Delhi, alleging that the company was engaged in cryptocurrency fraud. A hearing is scheduled for March 30. The Indian resource Bar and Bench recently spoke about this.
“To attract the attention of the victims, the notice of the lawsuit is published in the press in English in the Times of India and in Hindi in Dainik Bhaskar, and in Bengali in Anand Bazar, as well as in the national daily Patrika. The plaintiff ordered that the public notice be published in all four publications."
IQ Option faces lawsuit over alleged crypto fraud
Online broker IQ Option claims to have over 40 million accounts on the platform. The company gives access to cryptocurrency trading, however, the plaintiff, Achil Sharmar, claims that IQ Option deceives customers using complex algorithmic manipulation schemes.
The plaintiff said that IQ Option not only charges huge hidden fees that were not reported at the time of the deposit, but also prevents clients from withdrawing hard-earned money.
“IQ Option has tricked thousands of Indian citizens into trading cryptocurrencies through flashy web pages and advertisements for artificial intelligence technology,” the plaintiff argues.
In support of his words, he cites screenshots of messages on Quora, Twitter, Google Play Store and other websites, where people accuse the company of fraudulent activities and report that they cannot collect their money.
The defendant demanded that a public statement be published for other victims to join the claim. It requires a complete injunction and blocking of access to all forex broker websites, mobile apps and mirrors.
In addition, he is seeking a ban on the activities of IQ Option and its subsidiaries in India.
Last year, the Supreme Court overturned the Reserve Bank of India's ban on providing financial and banking services to companies conducting transactions or dealing with cryptocurrency.
Want to trade Forex with a regulated broker? Open a free account with AtoZ Markets approved forex brokers:
Is IQ Option scam or reliable?
As a reminder, in April last year, the Brazilian Securities and Exchange Commission (CVM) issued a public warning about the Cypriot resident, online broker IQ Option LTD. The financial regulator then notified the citizens that the company did not have permission from local authorities to attract customers living in Brazil.
This is not the first time that the Cypriot broker IQ Option has violated the "territorial integrity" of a state where it has no right to stay, namely, to attract local citizens to trade OTC instruments such as Forex, binary options, and CFDs. For example, in April of that year, IQ Option was accused of unauthorized activity in offering financial services in Albania, which also prompted a warning from the local financial regulator AMF.
Note that the IQ Option brand is used by two companies, the offshore (Saint Vincent and the Grenadines) IQOption Ltd., and the European (licensed by the CySEC) IQOption Europe Ltd.
Should you trade Forex on your own at all?
Before you start trading Forex, you'll want to read this.
Our in-house trading expert Dr Yury Safronau, PhD in Economic Sciences, gives you daily his best forex, metals, and cryptocurrencies to buy and sell signals right now.
His trading strategies which are based on non-linear dynamic models have achieved more than 65 000 pips of profits since 2015. And right now there are some very strong buy and sell signals across several markets you don't want to miss.
Want to see which ones?