22 million USD fines for promoting binary options

For at least several years, there has been a perception among financial regulators that binary options are "evil embodied" options that should be combated. This is confirmed by, among others their total ban on promotion in the European Union. Even Facebook and Google applied similar restrictions on advertising. Overseers elsewhere in the world often put "binaries" on a par with cheating. Michale Shah, the owner of Zilmil Inc., was of a different opinion, promoting these instruments in a very intensive way.

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75 million fine? The sentence "relaxed"

The US financial commission, the Commodity Futures Trading Commission (CFTC), announced a court decision that imposed a fine on Michael Shah of 22 million USD. It is worth emphasizing that this is a judgment that has been mitigated, because initially the fine was to be based on 75 millions. The CFTC accused Shah of embezzling funds from US citizens through the promotion of binary instruments. In slightly over half a year, Zimil Inc. it was to send over 60 millions of emails with platform ads offering trade on binary instruments. Often, he also used video materials with the statements of people who allegedly had regular, high income from investments on binary options.

Promotion was often effective, because in advertising materials Shah often missed the truth and informed about the possibility of achieving high and quick profits. The accused collaborated with such brands as OptionRally LBinary, TraderXP, Trade Rush or Banc de Binary, which at one time were also present in Europe.

Michael Shah was supposed to earn a total of 17,8 million USD on his fraudulent practice. Eventually, he will have to give back more than 4 million USD more. The official announcement can be found on the CFTC website here.

Be sure to read: Binary options will be banned in Poland by the KNF