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Binary Options, Fraud and Money Laundering May 31, Binary options are a risky business and one that arguably does not lend itself to money laundering because of the risk of losing everything, unless of course the launderer owns and manipulates the process end to end e. For fraudsters, binary options are another story and an attractive business to be in where they can defraud millions of investors victims into believing that they can hit the jackpot and drain them of their hard-earned funds and credit lines.

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Regulation and fraud[ edit ] Further information: Securities fraud Many binary option "brokers" have been exposed as fraudulent operations. Manipulation of price data to cause customers to lose is common.

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While some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by U. Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U. For a comprehensive overview of binary options, including information about investing in binary options that are subject to U. What is a Binary Option?

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Resources for Victims Binary Options Fraud Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U. Investors should be aware of fraudulent promotion schemes involving binary options and binary options trading platforms. What is a Binary Option? Once the option is acquired, there is no further decision for the holder to make regarding the exercise of the binary option because binary options exercise automatically.

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