UK binary options clampdown sees another fraudulent entity wound up

Maria Nikolova

The High Court shut down Eclipse Finance Limited over false and misleading claims.

The efforts of the UK authorities to tackle binary options scams continue. The Insolvency Service has confirmed that another binary options company was shut down over false and misleading claims.

The entity in question is Eclipse Finance Limited (Eclipse), incorporated on October 9, 2015, with a registered office in London.

Following complaints received about Eclipse’s methods, the Insolvency Service investigated and petitioned for the company to be shut down, in the public interest. The High Court heard that Eclipse was persuading people from Britain and all over the world to invest in a bogus binary options scheme. All investors lost significant sums, averaging over £50,000 each. Losses reported to Action Fraud totalled over £600,000.

Furthermore, potential investors were subject to high pressure sales tactics with misrepresentations being made as to the returns that would be made on investments. Trading was then apparently carried out with investors’ funds without authorisation and monies were removed from investors’ accounts without authorisation.

The company then put the blame for these losses on the hacking of its computer system. This was claimed to have happened on two separate occasions but no evidence of this was provided to victims or to the investigators.

Other investors reported that their accounts were simply drained of funds without explanation and that the company then failed to respond to all attempts at contact.

Commenting on the case, Irshard Mohammed, Investigation Supervisor at the Insolvency Service, said:

“These winding-up proceedings show that the Insolvency Service will use the weight of its powers to take firm action against companies that operate in such an unscrupulous way”.

The Official Receiver has been appointed as liquidator.

The clampdown on binary options scams in the UK has seen a number of fraudulent entities closed. In November last year, Metro Options Limited was wound up. At the end of October, the UK High Court wound up binary options scam firms behind Magnum Options, following an investigation by the Insolvency Service.

Let’s recall that on October 17, 2017, the City of London Police conducted a day of action, which involved visiting 20 offices with the City of London Corporation’s Trading Standards.

Read this next

blockdag

BlockDAG’s Keynote Video Drives $34.7M in Presales, Gaining Traction Among Solana (SOL) Investors and Litecoin Enthusiasts

Discover BlockDAG’s leadership in cryptocurrency, attracting Solana (SOL) investors and Litecoin enthusiasts with its strong growth prospects and groundbreaking mining technology. 

Digital Assets

Mt. Gox users alarmed by $10 billion transfer to unknown wallet

Mt. Gox has transferred 42,830 BTC, worth about $2.9 billion, from its cold wallets, according to Arkham Intelligence data. This marks the first major transfer from the defunct bitcoin exchange in five years.

Digital Assets

FTX co-CEO, SBF’s close associate sentenced to 90 months in prison

Former FTX executive Ryan Salame has been sentenced to 90 months in prison after pleading guilty to criminal charges last September.

blockdag

BlockDAG Dominates Crypto Presales With $34.7M Milestone, Surpassing Floki And Bonk In Market Influence

Discover how BlockDAG’s cutting-edge dashboard and presale achievements upstage Floki and Bonk in the cryptocurrency arena, signaling superior investment opportunities.

Market News, Tech and Fundamental, Technical Analysis

Dogecoin Technical Analysis Report 28 May, 2024

Dogecoin cryptocurrency can be expected to fall further toward the next support level 0.1500.

Retail FX

Canadian broker Questrade taps TradingView charting

Canadian securities brokerage Questrade has upgraded its web platform by integrating popular charting software TradingView.

Fintech

Germany lifts N26’s monthly cap of 60,000 new clients

Germany’s financial regulator has lifted a cap on the number of new clients that N26 Bank AG can take on after the fintech company improved its anti-money laundering controls. BaFin, the country’s financial watchdog, will remove the cap entirely from June 1, 2024.

Education

Animals and the money: Octa broker gathered the most popular slang words in financial markets

If you’ve seen ‘The Wolf of Wall Street’ with Leonardo DiCaprio as Jordan Belfort, you might have wondered why he’s called a wolf in the movie. It’s not just a random label. Animals are often used in finance to describe traders, their traits, or market conditions.

Industry News

Octa’s Global Ramadan Impact

Charity activities are an essential part of Ramadan celebrations. Octa seized this opportunity to implement a series of socially beneficial initiatives worldwide. Read about the projects the broker carried out in Indonesia, Malaysia, and Nigeria.

<