CFTC fines principal of Binary International

Maria Nikolova

On top of the imposition of a $200,000 civil monetary penalty, the CFTC order prohibits Curtis Dalton from soliciting funds from others for the purpose of trading any commodity interests.

The United States Commodity Futures Trading Commission (CFTC) continues with its efforts to put an end to binary options fraud. The US regulator today issued an order filing and settling charges against Curtis Dalton, the principal of Binary International, requiring him to pay $200,000 for offering illegal off-exchange retail commodity transactions to U.S. and overseas customers while failing to be registered by the CFTC as required.

From in or about October 2013 to in or about May 2016, Dalton, doing business as Binary International, solicited, accepted, and executed orders for binary options trading involving foreign currencies for both U.S. and overseas individuals. Dalton did business pursuant to an agreement with a British Virgin Islands company located in Cyprus. This BVI company operated a web-based and mobile application binary options trading platform, management and monitoring systems, and various other features to facilitate the operation of a binary options trading website.

Under the agreement with the BVI company, Dalton obtained a non-exclusive license to use and operate the BVI company’s products and services under the name Binary International. In exchange, Dalton paid the BVI company twenty percent (20%) of Binary International’ s revenues.

Dalton solicited customers through the Binary International website (www.binaryinternational.com), email, and by telephone. Most, if not all, of Binary International’ s customers were not eligible contract participants. Nor was Dalton himself an ECP.

Customers who made trades through Binary International bought or sold “call” or “put” options that allowed them to make predictive trades on whether the price of a certain foreign currency would go ”up” or “down” at a future date and/or time. During the Relevant Period, Dalton’s business took in at least $1.5 million from Binary International customers for the purpose of trading binary options.

In an agreement dated June 1, 2016, Dalton sold the business and assets of Binary International to a limited liability company formed in Mauritius in April 2016.

In addition to requiring payment of a $200,000 civil monetary penalty, the CFTC order prohibits Dalton from ever trading for others or soliciting and accepting funds from others for the purpose of trading any commodity interests.

Read this next

Digital Assets

Revolut receives FCA’s go-ahead to launch crypto trading

British fintech and banking firm Revolut has received a regulatory go-ahead to launch its cryptocurrency services in the UK.

Digital Assets

GBTC share is trading at 36% below bitcoin spot price

Grayscale Bitcoin Trust share has widened its discount relative to the underlying cryptocurrency held in the fund, the highest margin ever since its debut in 2013. Digital Currency Group’s flagship GBTC shares traded at a discount of 35.8% to net asset value (NAV) today.

Digital Assets

Crypto lender Nexo investigated by 8 US state regulators

State securities regulators in New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont are investigating crypto lender Nexo for allegedly failing to register its Earn Interest Product.

Metaverse Gaming NFT

Astar Network’s ad features 329 top brands to support Web3 in Japan

Blockchain innovation hub Astar Network is making strides in promoting the Web3 adoption worldwide. In yet another milestone, the smart contracts platform has run a national newspaper ad in Japan that set a new global record with participation from 329 blue-chip firms.

Digital Assets

Pyth Network welcomes onchain data from crypto market maker Auros

“By sharing our high-frequency trading data with a truly onchain decentralized network, we aim to foster innovation that will lead to better financial solutions for all participants.”

Digital Assets

Tokeny integrates Ownera to boost liquidity of tokenized assets

“The adoption of FinP2P will result in higher liquidity and better access to capital and assets by providing regulated firms with one secure point of connection to multiple digital asset networks across the globe.”

Digital Assets

BingX launches subsidy vouchers to cover user losses in copy trading

“With the introduction of copy trade subsidy vouchers, new users can easily try out trading strategies without incurring losses.”

Digital Assets

Talos expands sales team: Frank van Zegveld, Matt Houston, Hillary Conley

“The extensive leadership and industry expertise of these new hires will enable us to build long-lasting relationships as we continue to build out our global presence in EMEA and beyond.”

Executive Moves

FX and CFD broker Emporium Capital hires industry veteran Robert Woolfe as COO

His past experience within the FX and CFD industry includes top roles at Capital Index, London Capital Group, GKFX, ETX Capital, and IG.  “I’m delighted to be part of the Emporium Capital team and spearheading the brokerages global expansion plans”, he said about the appointment.

<