The U.S. regulators continue taking significant penalizing actions against unlawfully operating binary options firms, who have been providing access to U.S. based clients. The U.S. Commodity Futures Trading Commission (CFTC) has fined two binary options brokerages, Vault Options and Global Trader 365, in its latest action.
A court order obtained by the U.S. watchdog has found the two firms guilty of providing their services illegally and awarded a penalty and restitution charges. The firms jointly have to pay a civil monetary penalty totaling $3 million and $1,587,731 in restitution to the clients which the companies have defrauded.
US Courts System Resolves the Matter in Merely 4 Months
Both of the brands have been suspended and are no longer operational. The CFTC has issued its first notice about the case in March this year, when the regulator has outlined that the companies have been illegally soliciting U.S. clients.
The speed with which U.S. authorities have resolved this matter in court is substantially higher than in other cases, demonstrating a continuation in the commitment to limit illegal binary options offerings in the U.S.
The Participants in Forex Trading and their Role in the MarketGo to article >>
Vault Options and Global Trader 365 are not the first binary options companies to have been fined by the CFTC, as the U.S. regulators have been meticulous in advising brokerages not to provide their services in the country.
The firms have been found guilty of fraud with the CFTC order highlighting that the claims that representatives used to solicit clients to deposit were reckless, asserting that making large profits by trading the markets is easy.
The facts are quite the opposite as is the case with any occurrence when high-pressure sales tactics are being applied.
Vault Options and Global Trader 365 also misled clients that deposited funds were somehow insured against losses.