Banc De Binary to Pay $11m Settlement to US Regulators
- Following a multi-year investigation Banc De Binary is to pay $11m to settle with CFTC/SEC over allegations of illegally soliciting US clients.

The online brokerage and Liverpool Football Club sponsor Banc De Binary has reached an $11 million settlement with US authorities after several years of investigations over it illegally providing binary options trading to US customers.
Following a multi-year investigation a number of charges hit Banc De Binary from the CFTC in 2013, and now the company has reached a settlement with US authorities agreeing to pay $7.1 million in restitution and disgorgement, $2 million in civil penalties to the CFTC, and $1.95 million in civil penalties to the US SEC.
This is according to filings this week in a Nevada Court, including dockets 156 and 160, after docket 147 was filed on February 16, 2016 in the United States District Court, Nevada District.
According to people close to the developments, the judgements issued under docket 156 and 160 have been finalized (for the amounts mentioned above) while the agencies have not yet published their respective press releases as the judges for each stipulated case still need to sign-off on the plan for distribution (under docket 155).
The distribution will happen through a fund that will be created for $9 million of the settlement money for the CFTC and SEC cases, with the press releases to follow shortly from each regulator in the coming days ahead. The SEC had no comments.
Banc De Binary said it neither admits nor denies the allegations, common language used in settlements with both the SEC and CFTC (as well as in NFA related cases).
A company spokesperson said "We look forward to putting this behind us," while thanking the agencies, according to coverage by WSJ. The company's founder Oren Laurent will pay $150,000 as part of the settlement.
The news follows CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision and control of the Cyprus Stock Exchange as well as transactions executed in the Stock Exchange, its listed companies, brokers and brokerage firms.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions is the granting of operation licenses to investment firms, including investment consultants, brokerage firms and brokers. This includes provisions for Cyprus Investment Firms (CIF), who provide and perform investment services and activities either within Cyprus or abroad on a professional basis on certain financial instruments.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The CySEC is administered by a seven-member Board, which consist of the Chairman and Vice-Chairman, each of whom provide their services on a full and exclusive employment basis, and five additional non-executive members.All individuals on CySEC’s Board are appointed by the Council of Ministers following a proposal of the Minister of Finance. Their service reflects a five-year term. The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision and control of the Cyprus Stock Exchange as well as transactions executed in the Stock Exchange, its listed companies, brokers and brokerage firms.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions is the granting of operation licenses to investment firms, including investment consultants, brokerage firms and brokers. This includes provisions for Cyprus Investment Firms (CIF), who provide and perform investment services and activities either within Cyprus or abroad on a professional basis on certain financial instruments.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The CySEC is administered by a seven-member Board, which consist of the Chairman and Vice-Chairman, each of whom provide their services on a full and exclusive employment basis, and five additional non-executive members.All individuals on CySEC’s Board are appointed by the Council of Ministers following a proposal of the Minister of Finance. Their service reflects a five-year term. Read this Term's recent fine for 350,000 euros requiring Banc De Binary to pay up again, as covered by Finance Magnates, after the Cyprus regulator said it was preparing to issue more monetary penalty enforcements.
The online brokerage and Liverpool Football Club sponsor Banc De Binary has reached an $11 million settlement with US authorities after several years of investigations over it illegally providing binary options trading to US customers.
Following a multi-year investigation a number of charges hit Banc De Binary from the CFTC in 2013, and now the company has reached a settlement with US authorities agreeing to pay $7.1 million in restitution and disgorgement, $2 million in civil penalties to the CFTC, and $1.95 million in civil penalties to the US SEC.
This is according to filings this week in a Nevada Court, including dockets 156 and 160, after docket 147 was filed on February 16, 2016 in the United States District Court, Nevada District.
According to people close to the developments, the judgements issued under docket 156 and 160 have been finalized (for the amounts mentioned above) while the agencies have not yet published their respective press releases as the judges for each stipulated case still need to sign-off on the plan for distribution (under docket 155).
The distribution will happen through a fund that will be created for $9 million of the settlement money for the CFTC and SEC cases, with the press releases to follow shortly from each regulator in the coming days ahead. The SEC had no comments.
Banc De Binary said it neither admits nor denies the allegations, common language used in settlements with both the SEC and CFTC (as well as in NFA related cases).
A company spokesperson said "We look forward to putting this behind us," while thanking the agencies, according to coverage by WSJ. The company's founder Oren Laurent will pay $150,000 as part of the settlement.
The news follows CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision and control of the Cyprus Stock Exchange as well as transactions executed in the Stock Exchange, its listed companies, brokers and brokerage firms.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions is the granting of operation licenses to investment firms, including investment consultants, brokerage firms and brokers. This includes provisions for Cyprus Investment Firms (CIF), who provide and perform investment services and activities either within Cyprus or abroad on a professional basis on certain financial instruments.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The CySEC is administered by a seven-member Board, which consist of the Chairman and Vice-Chairman, each of whom provide their services on a full and exclusive employment basis, and five additional non-executive members.All individuals on CySEC’s Board are appointed by the Council of Ministers following a proposal of the Minister of Finance. Their service reflects a five-year term. The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision and control of the Cyprus Stock Exchange as well as transactions executed in the Stock Exchange, its listed companies, brokers and brokerage firms.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions is the granting of operation licenses to investment firms, including investment consultants, brokerage firms and brokers. This includes provisions for Cyprus Investment Firms (CIF), who provide and perform investment services and activities either within Cyprus or abroad on a professional basis on certain financial instruments.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The CySEC is administered by a seven-member Board, which consist of the Chairman and Vice-Chairman, each of whom provide their services on a full and exclusive employment basis, and five additional non-executive members.All individuals on CySEC’s Board are appointed by the Council of Ministers following a proposal of the Minister of Finance. Their service reflects a five-year term. Read this Term's recent fine for 350,000 euros requiring Banc De Binary to pay up again, as covered by Finance Magnates, after the Cyprus regulator said it was preparing to issue more monetary penalty enforcements.