SEC goes after binary options fraudsters behind LBinary and Ivory Option

Maria Nikolova

Anton Senderov and Lior Babazara a/k/a Lior Bar, are accused of defrauding more than 2,800 US investors and causing them to lose over $5 million.

The United States Securities and Exchange Commission (SEC) keeps up its efforts to put an end to binary options scams. On October 9, 2019, the SEC charged two Israeli individuals, Anton Senderov and Lior Babazara a/k/a Lior Bar, with defrauding more than 2,800 US investors and causing them to lose over $5 million through online sales of binary options.

The SEC’s complaint alleges that Senderov and Babazara defrauded investors through two online binary options brokers they controlled, LBinary and Ivory Option. The defendants also owned and controlled LianTech Finance Marketing, Ltd., which operated a call center in Israel that functioned as a “boiler room.”

According to the SEC’s complaint, employees at the call center allegedly persuaded investors to open binary option trading accounts and deposit significant sums into those accounts. Call center employees lied to investors about their professional backgrounds and falsely told investors that the brokers earned money only if investors made money. In reality, the brokers earned money only from investor losses and therefore had no incentive to advise investors on how to trade binary options profitably.

Most investors lost money, with some losing their entire savings. The binary options brokers largely refused to honor investor requests to withdraw money from their trading accounts.

The SEC’s complaint, filed in federal district court in the Eastern District of Washington, charges Senderov and Babazara with violating the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933. The duo is also charged with violating Section 20(a) of the Securities Exchange Act of 1934 (Exchange Act) by acting as control persons for LianTech, LBinary, and Ivory Option’s uncharged violations of the antifraud provisions of Sections 10(b) and 15(a) of the Exchange Act and Rules 10b-5(a) and (c) thereunder.

The regulator seeks disgorgement of ill-gotten gains, prejudgment interest, financial penalties, and permanent injunctions against the defendants.

Let’s recall that, about two weeks ago, the SEC filed a complaint against Peter Szatmari. Between 2014 and 2016, Szatmari participated in the creation and dissemination of at least six false and misleading marketing campaigns designed to persuade potential investors, predominately in the United States, to open and fund binary options trading accounts with overseas unregistered brokers operating on the Internet. The misleading websites and videos were viewed by more than 350,000 persons and caused more than 25,000 investors to make deposits for trading binary options with one of approximately 35 unregistered brokers.

Read this next

Digital Assets

Crypto.com secures preliminary approval to operate in Canada

Crypto.com, one of the longest-established crypto platforms, has become the first digital asset platform to sign a Pre-‘Registration Undertaking’ with the Ontario Securities Commission (OSC) in Canada.

Retail FX

CySEC hits IC Markets One with regulatory warning

The Cyprus Securities and Exchange Commission has once again stepped up its fight against unauthorized brokers.

Uncategorized

XTAGE now offers bitcoin and ether trading to 3.6M Brazilian investors

Brazilian financial services giant XP has officially launched its crypto trading platform XTAGE, which was built on major American stock exchange Nasdaq’s trading technology.

Institutional FX

FX volume drops 7pct at CLS Group in July 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in July.

Digital Assets

Web3 startup PIP integrates with Binance ecosystem

Web3 payment provider PIP has announced integration with the Binance ecosystem, which allows the firm to vastly develop and propose needed products and improvements that are worthy of competing with others chains.

Industry News

Celsius $750m insurance claims are fraud, says lawyer seeking EU crypto superfund

“It is an intentional deception in aid of a billion-dollar securities offering.”

Institutional FX

DGCX brokers authorized to provide derivatives trading and clearing services

The DFM is looking to provide multiple asset classes such as; equities, ETFs, equities’ futures, crude oil futures, etc. to meet the growing demand from its diversified base of local and international investors.

Digital Assets

EQONEX leaves “crowded crypto exchange space” amid crypto winter

“The recent extreme market volatility and declining trading volumes have added to the headwinds being felt by exchange operators. We take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term.”

Digital Assets

FTX and Paradigm partner for spreads trading: lower risk, lower fees

“This structured spread trading product is the first that will enable crypto investors to utilize cash and carry trades through FTX and Paradigm.”

<