Additional Two Binary Options Brokers Wound Up by UK Insolvency Service

Last week, the UK High Court has shut down the binary options broker Magnum Options.

Two binary options brokers have been placed in provisional liquidation following an investigation by a branch of the Insolvency Service, according to a statement published today on GOV.UK.

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The UK authorities said that Right Corp Limited and Curve Point Limited have operated websites that offer binary options trading platforms while not being authorised to render financial services in the country.

The company’s sales representatives had made inaccurate claims about their products, falsely describing binary options “as being the simplest form of trading.” Same as ever, they promoted themselves as offering controlled risk, low cost, big gains if the trader guesses right, and ease of use.

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In addition, the statement warned investors against companies or persons that approach victims of binary options fraud claiming that, for a fee, they can help them recover the sums invested or the losses incurred on unlawfully operating trading platforms.

It further states: “It is understood that clients of the companies have been contacted by individuals who are claiming to be acting on behalf of the “liquidator” of Right Corp Limited. These clients are told that if they were prepared to pay a further amount of money to the purported liquidator, they would be able to recover the sums that they had invested in the companies. Any individual contacted in this manner is advised not to make any such payment and to contact the Official Receiver whose details are given below.”

This type of activity is typical of the fraud mechanism known as a ‘recovery room’. Although some public agencies could help people who have lost money, they don’t charge a fee, guarantee money back, or give special preference to anyone who files a formal complaint.

Finally, the announcement states that case is now subject to High Court action and explained that the two companies were placed into provisional liquidation to protect assets in the possession or under the control of the companies pending the determination of the petitions.

Last week, the UK High Court shut down the binary options broker Magnum Options which took a total of £750,000 from vulnerable people by selling the fixed-odds betting investments.

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