In what appears to be a first for the industry, the Chief Executive Officer of a binary options technology provider has been arrested in New York. The event took place two days ago after an investigation led by the FBI claimed wire fraud and conspiracy to facilitate wire fraud charges were brought forward.

The company’s name is Yukom and the name of its former CEO is Lee Elbaz. The brokers that the company was providing technology to were Eagle Option and Binary Book. The companies illicitly targeted clients in the US without having the appropriate license to do so.

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The investigation was facilitated by Google, which has complied with an FBI request to disclose the content of some emails that Ms Elbaz wrote to third parties. The arrest warrant was issued due to an investment in binary options that was made by at least one US citizen.

Commenting to Finance Magnates Dr. Zvi Gabbay of Barnea & Co., who is representing the company in Israel, said: ”Currently, all of our efforts are now focused on helping Lee. Because these legal proceedings are taking place in the United States, a federal judge needs to be convinced that there is no flight risk and that Lee will appear as required for court hearings and investigation purposes.”

“We are still in the early stages of the case, and have not been presented with an indictment. The company believes that there are quite a few mistakes in the theory presented by the prosecution, and that in due course the evidence gathered will portray a very different picture,” Dr. Gabbay elaborated.