Regulator circles binary options broker that pushed its client to the limit

Maria Nikolova that allegedly led to the suicide of a 61-year old Canadian man, attracts the attention of Denmark’s financial regulator.

Last week, FinanceFeeds reported about the horrid consequences of the aggressive practices of binary options broker According to an article in The Times of Israel, it was this particular broker that led to the suicide of a 61-year old Fred Turbide of Edmonton, Alberta. Mr Turbide suffered losses exceeding CAD 300,000 (USD 226,760), with about two-thirds of this sum lost on the platform, which operates from Israel.

The binary options broker has now attracted the attention of regulators outside of Canada and Israel. In a token move, Denmark’s Financial Supervisory Authority has voiced its concerns about this particular company. The regulator notes that it has been informed that 23 Traders, operating via, has been offering to carry out financial services in Denmark. The watchdog explains that 23 Traders does not have authorization from the Danish Financial Supervisory Authority in accordance with the Financial Business Act to provide such services in Denmark.

It is, of course, useful for regulators to issue warnings – as these may serve to prevent customers from making the wrong investment and suffering heavy losses. However, the percentage of clients of binary options firms that consult regulatory websites is unknown and, furthermore, some of the websites of regulators may be hard to navigate even for people who know what they are looking for.

In addition, regulatory announcements, alerts and warnings have minimal legal value when it comes to pursuing a fraudulent broker in court. The activities of fraudulent binary options companies have thus far been immune to “Black Lists”. The “naming and shaming” approach is simply not effective in this respect.

The efforts are now concentrated in the hands of EUROPOL, which last week made clear its perspective on how to deal with binary options fraud. EUROPOL, the European Union’s federal law enforcement agency, has more extensive powers than a financial markets regulator. As noted in FinanceFeeds’ report, EUROPOL may take action against employees of binary options firms too.

The EUROPOL summit on binary options fraud, held two weeks ago, had amid its participants officials and investigators from a number of European countries as well as the FBI, the US Securities and Exchange Commission, the Canadian Securities Administrators (CSA), and France’s financial markets authority AMF.

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”