Daily news, documents and intelligence about Offshore Financial Centers and those who conduct business in them that you will not find anywhere else.
Author Photograph
Joel Berg
Full Bio

Binary Options Update – What to expect in 2018

December 21, 2017 by Joel Berg 2 Comments

The Exportation of the Binary Options Boiler Room Operations: 


As 2017 draws to a close, so does the legal grey area in which binary options scams were used to operating. The decision by Israel’s parliament to outlaw binary options come January 2018 is having an affect already as the people behind the fraud  are shutting up shop.

So, this means that the law is effective and it’s the beginning of the end for unregulated binary options platforms scamming innocent people? No, unfortunately not. Instead, what we are seeing is an exodus of the operation; opening up boiler room sales operations in jurisdictions that either allow for binary options or simply don’t enforce the law enough for it to be a deterrent to any of the actors. A popular jobs board in Israel still to this day is advertising for binary options jobs – what is most interesting is the amount of these companies who are looking for workers that are prepared to work abroad. The destinations of the new, old operations are Bulgaria, Romania, Ukraine etc. By moving their operations outside of Israel (and fleeing from the UK before they were raided), the fraudsters aim is to become unreachable to any prosecutors.

This is not true.

Those recovering money for binary options victims are not restricted to one jurisdiction – with international cooperation building and a realization of just how much damage the binary options scammers can do, there is a real push to squash these scammers wherever they are.

The reality is that just because the operations have moved offshore, the operators are still (by in large) Israeli nationals. This allows investigators to connect the dots and apply pressure on both sides of the operation – domestic and global. You can run, but you can’t hide from the law in the long run. Since the Federal Bureau of Investigation (FBI) got involved, this cooperation has stepped up as other countries, including UK and Australia have carried out raids, investigations and in some cases arrests.


Rise of the Cryptos   


As well as moving the operations offshore, many of the operators have tweaked the model itself so as to ensure the same scam can continue behind the curtains whilst appearing as a whole new business. Binary options as a product has been damaged incredibly as it has become synonymous with scammers. So, what these fraudsters have done is repackage the product.

2016: “So, you want to trade binary options – it couldn’t be easier to win!”

2017: “So, you want to trade cryptocurrencies – it couldn’t be easier to win!”

As cryptocurrencies have entered the zeitgeist, it is the perfect product switch. The public are aware of cryptocurrencies, but lack the knowledge needed to truly understand how they work, and how the large fluctuations in the price can be manipulated to become an advantage (to a trader who knows when to buy and sell – you can make money quickly). It is such a simple change on the back-end and bingo! “No, we don’t touch binary options, would you like to trade cryptocurrencies?”.




There has been both a physical and technological pivot made by the binary options industry in recent months. Physically they have shut up shop in Israel as the Israeli parliament outlawed the industry and technologically they have pivoted towards cryptocurrencies as the go-to product to hide their fraud behind. Essentially it is the same business model as binary options, after all it is an extremely profitable model.

2018 will be an interesting year as the authorities are already wising up to this new fraud and taking appropriate measures. The asset recovery firms will continue to chase these fraudsters down no matter where they are based. Now, with the introduction of the FBI and its huge reach, the name of the game is to cooperate, share the data, locate, freeze assets and bring about a long-awaited justice to the thousands of innocent victims that have been swept up in this global billion-dollar crime wave.  

eMail Alerts  

Sign-Up for eMail Alerts

 Average 4.5 out of 5

OffshoreAlert encourages lively, open debate and asks that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.



  • Frankadler
    By Frankadleron Tuesday, March 20, 2018 11:48:49 AM

    The way these people come for you is overwhelming, i met a certain Mrs. Victoria, an investment broker at Action Options, she did a very calculative maths for me about how i could make tripple of my capital, so i decided to go ahead and invest $540,000 of my hard earned sweat of 20 years in 7 accounts.I was able to withdrawal just $54, 000 at first and then i couldn't get any of my initail capital back. I called then several time and also sent emails but all to no avail. I was referred to sokolov.swiftrecovery(at)gmail(dot)com who had recovered about 89% of my lost funds to me. I couldn't believe at first that this was possible because i lost hopes in contacting anyone on the internet, but i guess not everybody is bad afterall. I am a strong believer in the scriptures and i know my God is fighting for me already.

    • Artman1963
      By Artman1963on Thursday, April 19, 2018 2:46:37 PM

      Stay away from this fraud scheme. Being a regulated broker means nothing. They change rules as they want. First the client must have a trading volume of 15 times bonus size, then they increased this to 30 times. The only think they care is your money. They will continue to change the rules so that you can lose more money. Do not deal with these cheaters. Thanks to calgarysecurity d0t 0rg who helped me get almost all of it back. I lost a whole lot of fortune to these retards, I moved from one broker to another and found out all them 3 were the same fraud, over 90k lost until, I didn’t even have money saved for my funeral anymore, I was at the suicide point.

      We hunt for red flags in high-value, cross-border finance by monitoring offshore and onshore courts, regulatory actions, offering documents, and other sources - and email you the results.

      View Recent Digests