NRGbinary, a website which purported to sell binary options to traders hoping to win on financial betting online, scammed millions of dollars in deposits from unsuspecting gamblers, according to the London lawyers who represent the scores of clients who have testified against the firm.
The site was first registered in the UK to Guy Galboiz, a 37-year-old Israeli businessman, who operated it from Israel. Within mere months it had shifted its operations to Cyprus and finally on to the Seychelles, allowing it to remain largely undetected for several years.
Guy Galobiz refused to comment when asked by Reuters. Other associates of the site declined to comment via e-mail or telephone, with messages left unreturned.
Despite its best efforts to regulate the online gambling industry, the UK Gambling Commission claims it had never heard of NRGbinary and Israeli authorities say they never looked into it because it did not sell products or services in Israel.
Clients told legal representatives how they were overwhelmed with high-pressure sales techniques and saw their money transferred without their consent, as well as finding themselves unable to withdraw funds when requested.
The story highlights the need for thorough analysis before signing up with any binary options trading firm. The industry has been growing at break neck pace in recent years, despite warnings from regulators about multitudes of sham companies and brokers.