NRGbinary accused of conducting a gambling scam

NRGbinary.com offered clients to bet on the movement of financial markets, stocks and commodities.

NRGbinary a web domain registered by an Israeli in London allegedly defrauded hundreds of people out of anywhere between US$10,000 and several hundreds of thousands of dollars.

UK.- NRGbinary’s NRGbinary.com a web domain registered by an Israeli in London allegedly defrauded hundreds of people out of anywhere between US$10,000 and several hundreds of thousands of dollars. The online options trading website offered clients the opportunity to make large amounts of money from simple bets on the movement of financial markets, stocks and commodities.

According to London lawyers and scores of former clients, NRGbinary and other companies linked to the same parent group had allegedly defrauded hundreds of people out of anywhere between US$10,000 and several hundreds of thousands of dollars.

Whilst it was initially registered in Britain, NRGbinary was run from Israel and sold its products to clients in the Middle East, Canada and South Africa. Within months it had shifted its registration to Cyprus and then to the Seychelles.

The fast-growing industry sells itself as a legitimate investment method. However, some companies selling binary options are little more than scams, according to the partners of a law firm acting for more than 3,000 former clients of binary options schemes including NRGbinary.

After numerous complaints, Israel banned binary options this year. British regulators including the Gambling Commission have issued general warnings about binary options brokers. The City of London police said that the fraud helpline Action Fraud received an average of 27 reports about binary options a month from June 2015 to last May.

In addition, France has blacklisted NRGbinary and related companies, saying they failed to provide accurate information to clients or to act honestly and fairly. Paris recently sent investigators to Israel to question directors from binary options companies. France’s market regulator, AMF, recently described the binary options industry as “highly risky and very dangerous.” The Paris public prosecutor’s office estimated as much as 4.5 billion euros (US$5 billion) in France alone has been lost on what AMF called “illegal forex and binary options websites and scams through false transfer orders” in the past six years.

Furthermore, other countries, including Belgium, have banned binary options trading. The United States requires binary options to be traded on regulated markets. Elsewhere, online operators continue to operate freely and go unregulated.