SEC obtains entry of default against fraudsters behind LBinary and Ivory Option

Maria Nikolova

The clerk’s order of default against Lior Babazara and Anton Senderov was entered on June 29, 2020.

The United States Securities and Exchange Commission (SEC) has secured an entry of default against binary options fraudsters allegedly responsible for investors’ losses of more than $5 million.

Several days after the regulator requested that the Washington Eastern District Court makes an entry of default against Lior Babazara and Anton Senderov, the key individuals behind fraudulent binary options scheme LBinary and Ivory Option, the clerk of Court has made an entry of default as to the defendants. The order was filed on June 29, 2020.

As FinanceFeeds has reported, Anton Senderov and Lior Babazara a/k/a Lior Bar, are charged with defrauding more than 2,800 US investors 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 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.

Read this next

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.”

Industry News

SEC uncovers online retail brokerage hacking scheme

Fraudsters were able to sell their holdings at artificially high prices and reap more than $1 million in illicit proceeds, the SEC alleged. 

Executive Moves

Cornerstone FS taps James Hickman as CEO

“I see great potential in the business from its proprietary technology to its regulatory permissions. It is already delivering an exceptional service to its SME customers and the scalable platform is ideally positioned to add further product capability.”

Retail FX

FCA warns of Lite Forex Pro as crackdown on clone scams continues

The UK Financial Conduct Authority has put out a press release that warns about a new ‘clone firm’ investment scam impersonating LiteForex‎, which rebranded last year as LiteFinance.

Digital Assets

Novogratz’s Galaxy Digital backs out of $1.2 billion deal to buy BitGo

Crypto merchant bank Galaxy Digital would not move forward with its bid to buy digital-asset custodian BitGo.

Executive Moves

OctaFX elevates Nikolas Charalampous to executive director role

OctaFX has promoted its head of dealing, Nikolas Charalampous, to the role of executive director, which saw the expansion of his day-to-day responsibilities and oversight.

<