SEC Hits Israeli Binary Options Broker EZTD with $1.7 Million Fine

The U.S. SEC (Securities and Exchange Commission) has levied a hefty monetary penalty against Israeli Binary Options broker EZTD. The SEC said in their statement that EZTD must pay a fine of $1.7 million for misleading American investors about the profitability of trading the exotic instruments; $200,000 in penalties; $1.5 million in forfeited revenues from US customers.

The agency also stated that EZTD was not registered as a securities dealer in the United States. EZTD was also accused to failing to disclose that investors were taking on big risks by entering into trades where EZTD was the counterparty, which means that all client losses went into the pockets of the brokerage, “not only did the firm fail to register the binary options or register as a broker-dealer to legally sell the investment to U.S. investors in the first place, but it failed to disclose on its trading platforms that there was significantly greater potential for investors to lose rather than earn money,” said the SEC.

Additionally, The SEC stated that EZTD lured investors into taking risks by claiming that their platform was “an extremely lucrative avenue for individuals who are looking to see an increase in income.”

According to SEC’s findings, less than 3 percent of EZTD’s 4000 US-based customers turned a profit. Stephanie Avakian, Deputy Director of the SEC’s Enforcement Division, explained that EZTD did not disclose that the odds were stacked against the client, “EZTD’s revenues were largely derived from customer trading losses, yet EZTD emphasized the profitability of trading in binary options,” she added.

In addition to fining EZTD, the SEC issued an investor alert on the dangers of unregistered Binary Options brokers.

European regulators have also issued multiple warnings over the last few months on unlicensed Forex and Binary Options brokers, with Dutch Minister of Finance, Jeroen Dijsselbloem, looking to ban the advertising of Binary Options in the Netherlands, along with other “toxic” investment products.

About Author: author Steve Todorov is the founder of Razor-Forex.com, an ardent digital currency enthusiast and Forex trader. Read More...

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6 comments :

  1. Fantastic news as the watchdogs are gaining momentum and the long arm of the law is reaching even traditional political allies.

    What needs examination now is whether or not these rulings have resulted in actual finances being recovered or if people are being put behind bars.

    I suspect these crooked brokers are running yet another swindle as we speak.

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  2. Looking after criminals.

    Nice one! The most important thing is if these people will get in jail.

    Also us customers should take their money back somehow..

    We will see what happens!

    19sZVkvfucHrkki4VhkcKmXZH8bMPopR6h

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  3. If the accusations by U.S SEC against EZTD are true, Then EZTD is a completely dishonest company.

    There is absolutely no gain in lying to their customers about getting high profits on invested funds and then let out a clumsy excuse for lose of funds by customers.

    EZTD now seems like a hyip to everyone and their little reputation and trust they got from the 3% happy customers appears to be all gone atleast, for now.

    Trust and good reputation are very important elements required for the growth of any business and EZTD just lost it.


    Thanks to the revealed information and fine by SEC, Potential and existing customers of EZTD knows what they're dealing with now.

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  4. I'm not so sure if this accusations are true or not. U.S. will investigate this and maybe EZTD are still innocents. I'm not so good at law or anything like this, but strongly believe that till a final result is given everyone is innocent.

    34ZnTiyNpiTb3RKQhRzSGzq3H99vW6VCzv

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  5. Users are understandably wary as the spate of revelations of dishonest operations continues to sweep the planet.

    S2e1YmSWRo1p5faz1GDUTokE3qTYvEPA9z

    ReplyDelete