Romanian authorities informed the public that they arrested 10 individuals involved in binary options and forex scams during the month of May. Due to Romanian laws, the identity of the arrested remains unknown.
According to the Romanian police, the arrests are the result of a long investigation with special forces and 55 searches all over Romania. Times of Israel reports that the people under investigation are Israeli, and involved in binary options and forex trading.
Their news report claims that they used bank accounts in Bulgaria, Israel and Cyprus during their operations that can be described as a financial crime. It is believed that six companies are involved in this criminal activity, but as the identities are unknown, it is still just a speculation.
Other press in Israel reports that the arrested people are Israeli owners of unregulated binary brokers from Romania. The police also explained how over 300 hard drives were seized in raids. Apparently, brokers were calling Romanian citizens and offering to trade with low risk and high returns. Unfortunately, no trading was taking place, as the deposited money was transferred immediately to already mentioned bank accounts in other countries.
At the moment it is unknown whether or not Israeli authorities are cooperating on this case.
Remember, earlier this year Israel completely banned binary options trading in Israel. Companies are not allowed to offer binary trading to Israeli citizens, but Israeli companies can do so outside the borders of their own country. This leaves a lot of space for manipulation, as in the case of scam international cooperation is necessary. Also, Israeli traders are forced to trade with unregulated brokers who still dare to offer their services, which makes this market very appealing to scam brokers who don’t plan to dominate the market the legal way but only take short-term advantage. Learn more about Israeli binary options.
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