Owner of binary options firm Y Trading pleads guilty to fraud

Maria Nikolova

Yehuda Belsky faces up to 40 years in prison, restitution in the full amount of each victim’s losses, forfeiture of $800,000 and a fine of up to $5 million.

Yehuda Belsky, the owner of Brooklyn-based binary options firm Y Trading, LLC, has earlier today pleaded guilty to one count of securities fraud, one count of failure to register as a commodities trading advisor and one count of misappropriation of customer funds. The plea was entered before United States District Court Judge Allyne R. Ross at the federal courthouse in Brooklyn.

When sentenced, the defendant faces up to 40 years in prison, restitution in the full amount of each victim’s losses, forfeiture of $800,000 and a fine of up to $5 million.

In 2008, Belsky was permanently barred by the CFTC from trading in commodity futures transactions and options. Nevertheless, from March 2014 to October 2018, Belsky presented himself to potential investors – using an alias – as an experienced securities and commodities trader. Belsky promised his victims that he would invest their money by trading securities or binary options, a type of investment in which investors are promised an opportunity to be paid predetermined amounts based upon the price of securities, commodities or other investments at particular points in time. Instead of doing as promised, Belsky misappropriated his victims’ investments for his personal use and to reimburse investors who had demanded repayment.

In September 2018, the Indictment in this case was unsealed at the New York Eastern District Court.

This marks yet another criminal lawsuit in the United States targeting fraudulent binary options schemes. In July, the trial of Lee Elbaz, also known as Lena Green, the former CEO of Yukom Communications, the retention services provider for brands like BinaryBook, is set to begin. The Indictment charges Lee Elbaz with one count of conspiracy to commit wire fraud and three counts of wire fraud.

Read this next

Institutional FX

Cboe Australia launches BIDS offering after successful migration of Chi-X

“Executing the migration of Chi-X’s technology platform was a tremendous industry-wide effort and we thank our customers, vendors, regulators and other market participants for their strong engagement and support over the past year.”

Institutional FX

Sucden Financial launches access to 25 of China’s futures and options contracts

“We are delighted to offer clients access to three key futures markets in China, the world’s largest commodity consumer.”

Industry News

Kraken sponsors Williams Racing to expand institutional reach and fan engagement

“Kraken’s partnership with Williams Racing shows what is possible when you combine a great mission with excellence, innovation and breakthrough performance. These are both iconic brands that have stood the test of time. We’re excited to engage with both Kraken’s and Williams Racing’s global communities, showcasing the power and life-changing impact of crypto and Web3.”

Retail FX

FXChoice taps Acuity’s news, sentiment tools, calendars, trade ideas on MT4/5

“Our tools are designed with the end-user in mind and are engineered to present insightful and actionable market data in an accessible way to help traders manage risk by identifying potential market movements before they occur and ultimately make better decisions on how, when, and where to invest.”

Digital Assets

BlockFi to refund $103K to Californian users

Bankrupt crypto lender BlockFi will refund more than $100,000 to its California-based users who continued to repay loans even after the company halted client withdrawals following a liquidity crisis.

Institutional FX

SimCorp and FlexTrade team up to strengthen Open Platform

Broker-neutral technology firm FlexTrade Systems announced that its solution FlexTRADER EMS has been certified for integration with SimCorp, a provider of integrated, front-to-back, multi-asset investment management solutions.

Digital Assets

MicroStrategy prepays Silvergate loan, trims loss on BTC bet

MicroStrategy, spearheaded by one of bitcoin’s most vocal proponents, has prepaid the $205 million bitcoin-backed loan it took out from insolvent crypto-focused Silvergate Bank in March 2022.

Executive Moves

UK spread better InterTrader hires Joe Rundle as CEO

Multi-regulated online trading provider InterTrader has publicly revealed its newest appointment, having onboarded industry veteran Joe Rundle as its Chief Executive Officer (CEO).

Digital Assets

Federal judge puts brakes on Voyager sale to Binance

A federal judge temporarily halted the proposed deal to sell bankrupt crypto lender Voyager Digital’s assets to Binance US after a request by the United States government for an emergency stay.

<