Banc De Binary

Banc De Binary was an online financial-services brand associated with the retail sale of binary options. Founded by Oren Laurent, the business operated through a group of entities connected with Cyprus, Israel, and the Seychelles, and marketed access to short-duration bets on whether the price of an underlying asset would rise or fall during a specified period. Customers did not purchase the underlying stocks, currencies, commodities, or indices. Instead, they entered contracts with an all-or-nothing payoff based on the outcome of a price prediction. The company offered several formats, including conventional binary options, long-term options, pairs trading, and so-called sixty-second options. The brand’s technology and pricing infrastructure was linked to SpotOption, an Israeli provider of binary-options platforms. Banc De Binary acted in part as a reseller and customized operator of that platform. According to the reference material, SpotOption set the option prices rather than those prices being directly established by an exchange. This structure, combined with the short duration and binary payoff, made the service resemble speculative wagering to many observers and regulators. The Wall Street Journal characterized the service as a website where users could bet on movements in assets such as gold, oil, and stocks. Banc De Binary claimed origins in either 2008 or 2009, depending on the company material cited. Its founder stated that the business was established on January 15, 2009. The organization later obtained a Cyprus Securities and Exchange Commission investment-firm license on January 7, 2013. Through the European regulatory passporting system, it was able to notify or operate across much of the European Economic Area, while non-European activities were attributed to a Seychelles-based entity. The company also presented addresses in New York and London, although reporting described those locations as virtual offices rather than substantial operating premises. The brand’s expansion was accompanied by increasing regulatory scrutiny. In the United States, the Commodity Futures Trading Commission and Securities and Exchange Commission alleged in 2013 that Banc De Binary unlawfully solicited U.S. customers and offered off-exchange options without the required registration and protections. A U.S. court later imposed a settlement requiring $11 million in restitution and penalties, permanently barring the company from doing business with U.S. persons. Regulators and investor-protection bodies in Canada, Australia, New Zealand, Israel, and parts of Europe also restricted, warned against, or investigated the company’s activities. CySEC separately imposed settlements and fines concerning alleged disclosure and compliance failures. The firm’s public profile was further damaged by complaints about withdrawals, bonus conditions, aggressive selling, and the inherent risks of binary options. In 2017, a related brand called Option.fm was connected by reporting to the so-called Hawking Code promotion, which used a fake CNN-style website and a fabricated association with physicist Stephen Hawking. Hawking’s office denied any connection. Oren Laurent was named in litigation as Option.fm’s chief executive but denied the allegation. On January 9, 2017, a company official announced that Banc De Binary would close, citing sustained negative press and damage to its reputation. The company surrendered its CySEC brokerage license, eliminating its ability to legally trade in the European Union, although CySEC retained supervisory authority over obligations incurred before closure. Some observers and clients questioned whether the business had genuinely ended or might relocate and rebrand. Banc De Binary is therefore best understood as a defunct and highly controversial binary-options brand whose history illustrates the regulatory and consumer-protection problems surrounding unregistered, short-term online financial products.

Banc De Binary emerged as an internationally marketed online binary-options business founded by Oren Laurent. Company statements gave inconsistent origin dates: one advertisement claimed a Seychelles founding in 2008, while Laurent stated in an interview that the firm was founded on January 15, 2009. The organization was not simply a single operating company. Banc De Binary Ltd. was based in Cyprus, while related entities including ET Binary Options Ltd., BO Systems Ltd., and BDB Services Ltd. were associated with Israel and the Seychelles. These entities collectively conducted business under the Banc De Binary name. The commercial model was based on retail binary options. A customer selected an underlying asset and predicted whether its price would rise or fall over a defined period. If the prediction was correct, the customer received a predetermined return; if incorrect, the customer could lose the amount committed. The company offered options linked to currencies, commodities, stocks, indices, and other assets, with durations ranging from longer-term contracts to extremely short sixty-second products. Customers did not own the underlying assets. The trading environment was supplied through SpotOption, an Israeli platform provider, whose system was customized and used by Banc De Binary. Reference material states that SpotOption set the option prices, rather than prices being formed on a conventional public exchange. The company expanded its customer base and claimed tens of thousands of accounts by 2011, while also describing itself in later litigation as having approximately 60 employees. Its marketing presented the service as an accessible way to trade global markets. However, external reporting questioned the nature of its offices and international footprint. Addresses in New York and London were described as virtual offices, while the corporate and regulatory structure was centered on Cyprus and related offshore entities. A major institutional turning point came on January 7, 2013, when Banc De Binary Ltd. obtained authorization as an investment firm from the Cyprus Securities and Exchange Commission. The authorization allowed the business to use European passporting arrangements and notify regulators in other European Economic Area jurisdictions. The company stated that activity outside the European Union was conducted by a Seychelles entity. This structure did not prevent scrutiny in non-European markets. Regulators in the United States, Canada, Australia, New Zealand, Israel, and elsewhere warned that the brand was not authorized to solicit local customers or that its products posed significant investor risks. In the United States, the SEC and CFTC brought civil enforcement proceedings in 2013. Their allegations included unlawful solicitation of U.S. customers, offering off-exchange options, and failure to comply with registration and customer-eligibility requirements. A preliminary injunction restricted further U.S. activity. Banc De Binary initially said it was discontinuing U.S. operations while discussions with regulators continued, but the case proceeded. On January 26, 2016, the company agreed to a settlement requiring $11 million in restitution and penalties. It was permanently barred from doing business with U.S. persons, and the National Futures Association was appointed to help administer customer refunds. European regulatory action continued. CySEC announced a €10,000 fine in April 2014 concerning alleged concealment of material information about close links with another company in an authorization application. In 2016, CySEC also announced a €350,000 settlement for possible violations by the Cyprus-based company. Consumer-protection bodies highlighted the risks of binary options, including total loss when a prediction was wrong and restrictions attached to promotional bonuses. The company received poor ratings from the Better Business Bureau and appeared in investor-warning materials from U.S. and Canadian authorities. Reputation problems intensified in 2017 when reporting linked Option.fm, an associated brand, to the Hawking Code scam. The promotion used a fabricated news presentation and falsely suggested that Stephen Hawking had developed a profitable trading algorithm. Hawking’s office denied any involvement. The episode reinforced public concerns about the company’s marketing and affiliate ecosystem, although Laurent denied being the chief executive of Option.fm when named in litigation. On January 9, 2017, a company official announced Banc De Binary’s closure, citing consistently negative press and a tarnished public image. The firm surrendered its CySEC license, removing its ability to legally trade in the European Union. CySEC continued supervising previously incurred obligations and the formal wind-down. Reports described the company’s headquarters as closed and clients as still awaiting payments, while some industry participants questioned whether the business had truly ended or might reappear under another name. The brand is consequently treated as defunct, with its legacy defined by the growth of online binary-options retail trading, extensive regulatory intervention, and unresolved consumer-protection controversy.

1. 2017Closure announced

   The company announced closure and surrendered its CySEC brokerage license on January 9.

   Source
2. 2016U.S. settlement

   Banc De Binary agreed to $11 million in restitution and penalties and a permanent prohibition on doing business with U.S. persons.

   Source
3. 2016CySEC settlement

   CySEC stated that the Cyprus-based entity paid €350,000 in relation to possible violations.

   Source
4. 2014CySEC disclosure fine

   CySEC announced a €10,000 fine concerning alleged concealment of material information in an authorization application.

   Source
5. 2013CySEC authorization

   Banc De Binary Ltd. received an investment-firm license from the Cyprus Securities and Exchange Commission on January 7.

   Source
6. 2013U.S. enforcement action

   The SEC and CFTC brought proceedings alleging unauthorized solicitation and off-exchange binary-options activity involving U.S. customers.

   Source
7. 2009Founder states that Banc De Binary was established

   Oren Laurent identified January 15, 2009 as the company’s founding date, although separate company advertising cited 2008.

   Source

An online, internationally marketed retail binary-options brokerage offering rapid, fixed-outcome predictions on asset-price movements. Its positioning emphasized accessibility and short-duration trading, while regulators and consumer organizations highlighted the speculative, all-or-nothing nature of the products and the risks associated with the platform.

• Classic binary optionsBinary options

  Fixed-outcome contracts in which customers predicted whether the price of an underlying asset would rise or fall by a specified time. The customer did not acquire the asset itself; the result depended on the platform’s defined settlement price and the direction of the prediction.

• Sixty-second optionsShort-duration binary options

  Very short-term binary options designed to settle after approximately one minute. Their speed and all-or-nothing payoff made them particularly speculative and were among the products associated with regulatory and consumer-protection concerns.

• Long-term optionsBinary options

  Binary-option contracts with a longer period between opening and settlement than the company’s rapid short-duration products. They remained prediction-based instruments rather than conventional ownership of currencies, securities, commodities, or indices.

• Pairs tradingBinary-options strategy

  A platform format involving a prediction about the relative performance of two selected assets. It was offered alongside conventional binary options and other variations of the SpotOption-based trading environment.

• 2017Hawking Code promotion

  International online markets

  A promotion associated in reporting with the related Option.fm brand used a fake news site styled as a CNN outlet and fabricated claims that Stephen Hawking had created a profitable trading algorithm. The promotion directed users toward a binary-options trading service and promised implausibly reliable gains.

  Outcome. Stephen Hawking’s office denied any connection. The promotion became a major reputational issue in reporting about Banc De Binary and its associated brands.

  Source

• 2017Close the Banc De Binary businessStrategy

  Company officials cited sustained negative press coverage and a damaged reputation after years of regulatory and consumer criticism.

  What changed. Banc De Binary announced its closure and surrendered its Cyprus Securities and Exchange Commission brokerage license.

  Aftermath. The brand became unable to legally trade in the European Union, although CySEC continued supervising prior obligations and the formal wind-down. Some observers questioned whether the business might relocate or rebrand.

  Source
• 2016Settle U.S. enforcement caseOther

  The SEC and CFTC case alleged that Banc De Binary unlawfully solicited U.S. customers and offered off-exchange binary options without the required registrations.

  What changed. The company agreed to pay $11 million in restitution and penalties and accepted a permanent ban on doing business with U.S. persons.

  Aftermath. Refunds were to be handled through the National Futures Association as court-appointed monitor, while the settlement eliminated the company’s lawful U.S. market access.

  Restitution and civil penalties. 11000000 USD (2016 settlement)

  Source
• 2013Discontinue U.S. customer activityOther

  After the SEC and CFTC initiated proceedings concerning alleged unregistered activity, the company announced that it would stop doing business with U.S. residents.

  What changed. Banc De Binary stated that it was voluntarily discontinuing operations involving U.S. customers while the regulatory dispute proceeded.

  Aftermath. The U.S. litigation continued and ultimately resulted in a permanent prohibition and an $11 million restitution-and-penalty settlement.

  Source

• 2017Hawking Code deception allegationsControversy

  The associated Option.fm promotion falsely invoked Stephen Hawking and used a fabricated news presentation to market binary-options trading.

  Source
• 2014CySEC authorization disclosure matterControversy

  CySEC fined the Cyprus-based company over alleged concealment of material information concerning links with another company in its authorization application.

  Source
• 2013Unauthorized U.S. customer solicitation allegationsControversy

  The SEC and CFTC alleged that Banc De Binary offered off-exchange options and solicited U.S. customers without the registrations and safeguards required by U.S. law.

  Source

1. Banc De Binary