An impending mega-quake is about to hit the binary options industry. One of the biggest binary options broker, Banc De Binary, is shutting down operation, folding up its business and leaving the binary options industry indefinitely.
A high-ranking official at the CySEC- regulated binary options powerhouse has confirmed the news, explaining that the decision was made by the management of the company following the constant negative press that the firm faced over the past year.
“It has become somewhat like the wild west in the past few months,” the company official said: “It’s not worth the tarnished reputation. I can’t see how we can continue operation under such scrutiny and public image.”
The official further explained that all arrangements have been put in place to stop accepting new clients. “All customers’ funds are being sent back to their original source. We are just waiting for the formal announcement from the management board to begin the process. They are literally about to kill off a five hundred million dollar firm, but even worse – the icon of the binary options industry,” he concluded.
Oren Laurent founded Banc De Binary in the year 2009 and at its peak employed hundreds of employees. It has its headquarters in Israel with an office in Limassol Cyprus. Banc De binary woes could be traced back to early last year when it started receiving bad publicity regarding some underhand dealings of the company. The first sign of troubles surfaced last September when English Premier League Club Southampton abrogates a sponsorship deal it had signed with the firm only a few weeks earlier. The English Premier League football club did not provide any further detail for backing off from the deal, but pressure from local tabloids must have played some role.
Since it started operation, Banc De Binary has been a high profile binary options brokerage platform, even sponsoring Liverpool Football Club for one year. However, the company has been at the center of some controversies and press inquiries, including a special report about the way United Kingdom Newspapers were duped by a complicated affiliate program- Banc De Binary website was among the websites traders were being diverted to.
Recently, the company has come under the scrutiny of many financial regulators. Just last February, the binary options brokerage firm was forced to pay close to $11 million to US authorities after investigations revealed the fact that the company has illegally targeted US customers.
As part of the financial settlement with the US authorities, Banc De Binary Paid $150,000 to the American Commodities Futures Trading Commission. Just a month earlier, in January 2016, Banc De Binary was fined $350,000 by the Cyprus Securities and Exchange Commission for some violations.