Banc De Binary

A summary of what happened?

Banc De Binary was a financial firm specializing in binary options trading, established in 2009 by Oren Shabat Laurent, an American-Israeli entrepreneur. Operating primarily through online platforms, the company offered clients the ability to speculate on the price movements of various financial assets. Despite its initial prominence in the binary options market, Banc De Binary became embroiled in numerous controversies, leading to significant legal actions and its eventual closure.

Major Concerns, Complaints, and Accusations:

1. Regulatory Violations:
   • Unauthorized Operations in the U.S.: In 2013, the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) charged Banc De Binary with illegally offering binary options to U.S. investors without proper registration. The company was accused of violating the CFTC’s ban on off-exchange options trading and operating as an unregistered Futures Commission Merchant.
     CFTC
   • Settlement and Penalties: In 2016, Banc De Binary agreed to pay $11 million to settle charges with the SEC, which included disgorgement of profits and penalties. Additionally, the company was permanently barred from offering its services to U.S. investors.
     Securities and Exchange Commission
2. Misleading Marketing Practices:
   • False Claims: The company faced allegations of making exaggerated claims about potential returns and downplaying the risks associated with binary options trading. Such practices misled investors about the true nature of the financial products offered.
   • Aggressive Sales Tactics: Reports indicated that Banc De Binary employed aggressive sales strategies, pressuring individuals to invest more funds and often targeting inexperienced investors.
3. Client Fund Mismanagement:
   • Withdrawal Issues: Numerous clients reported difficulties in withdrawing their funds, with delays or refusals that lacked clear explanations. Such practices raised concerns about the company’s liquidity and ethical standards.
   • Account Manipulation: There were accusations that the company manipulated client accounts, leading to unexpected losses and eroding trust in its trading platform.
4. Legal Actions and Sanctions:
   • International Regulatory Scrutiny: Beyond the U.S., regulators in countries like Australia, New Zealand, and Canada issued warnings against Banc De Binary for operating without proper authorization and engaging in potentially fraudulent activities.
     The Times of Israel
   • Fines and Penalties: In January 2016, the Cyprus Securities and Exchange Commission (CySEC) fined Banc De Binary €350,000 for multiple violations, including misleading investors and operating without proper licenses.
     The Times of Israel
5. Closure and Aftermath:
   • Ceasing Operations: Facing mounting legal challenges and regulatory pressures, Banc De Binary ceased operations in early 2017. The company laid off employees and began the process of closing its business activities.
     The Times of Israel
   • Ongoing Legal Proceedings: Even after its closure, legal actions continued, with law firms pursuing compensation for affected clients. For instance, Giambrone Law initiated group litigation against Banc De Binary, aiming to recover lost funds for investors.
     Giambrone Law

In summary, Banc De Binary’s trajectory from a leading binary options broker to a defunct entity is marked by a series of regulatory violations, misleading practices, and legal challenges. The company’s actions not only led to significant financial losses for many investors but also contributed to the broader scrutiny and regulation of the binary options industry worldwide.

Analyzing the Fake Copyright Notice(s)

Our team collects and analyses fraudulent copyright takedown requests, legal complaints, and other efforts to remove critical information from the internet. Through our investigative reporting, we examine the prevalence and operation of an organized censorship industry, predominantly funded by criminal entities, oligarchs, and disreputable businesses or individuals. Our findings allow internet users to gain insight into these censorship schemes’ sources, methods, and underlying objectives.

What was Banc De Binary trying to hide?

Banc De Binary‘s attempts to hide unfavourable content through the misuse of copyright notices while allegedly engaging in perjury present serious legal concerns. These actions suggest a calculated attempt to manipulate legal systems to suppress free speech, a fundamental violation of copyright law principles and an abuse of legal processes. The use of such tactics not only undermines the integrity of copyright protection but also potentially constitutes perjury, further entangling Banc De Binary in legal accountability. Let’s examine the information Banc De Binary may be trying to remove from the internet –

How do we counteract this malpractice?

Once we ascertain the involvement of Banc De Binary (or actors working on behalf of Banc De Binary), we will inform Banc De Binary of our findings via Electronic Mail.

Our preliminary assessment suggests that Banc De Binary may have engaged a third-party reputation management agency or expert, which, either independently or under direct authorization from Banc De Binary, initiated efforts to remove adverse online content, including potentially fraudulent DMCA takedown requests. We will extend an opportunity to Banc De Binary to provide details regarding their communications with the agency or expert, as well as the identification of the individual(s) responsible for executing these false DMCA notices.

Failure to respond in a timely manner will necessitate a reassessment of our initial assumptions. In such an event, we will be compelled to take appropriate legal action to rectify the unlawful conduct and take the following steps –

Since Banc De Binary made such efforts to hide something online, it seems fit to ensure that this article and sensitive information targeted online by these events get a lot more exposure and traffic than what it would have received originally

We hope this becomes an excellent case study for the Streisand effect…The key idea behind the Streisand effect is that efforts to restrict information can backfire, often causing the information to gain more attention than it would have otherwise. This effect is widespread in the digital age, where users quickly notice and spread censorship efforts on social media and other platforms. Trying to suppress something can unintentionally lead to it becoming more visible, which Banc De Binary is finding out the hard way.

Potential Consequences for Banc De Binary

Under Florida Statute 831.01, the crime of Forgery is committed when a person falsifies, alters, counterfeits, or forges a document that carries “legal efficacy” with the intent to injure or defraud another person or entity.

Forging a document is considered a white-collar crime. It involves altering, changing, or modifying a document to deceive another person. It can also include passing along copies of documents that are known to be false. In many states in the US, falsifying a document is a crime punishable as a felony.

Additionally, under most laws, “fraud on the court” is where “a party has sentiently set in motion some unconscionable scheme calculated to interfere with the judicial system’s ability impartially to adjudicate a matter by improperly influencing the trier of fact or unfairly hampering the presentation of the opposing party’s claim or defense.”  Cox v. Burke, 706 So. 2d 43, 46 (Fla. 5th DCA 1998) (quoting Aoude v. Mobil Oil Corp., 892 F.2d 1115, 1118 (1st Cir. 1989)).

Is Banc De Binary Committing a Cyber Crime?

Yes, it seems so. Banc De Binary used multiple approaches to remove unwanted material from review sites and Google’s search results. Thanks to protections allowing freedom of speech in the United States, there are very few legal ways to do this. Banc De Binary could not eliminate negative reviews or search results that linked to them without a valid claim of defamation, copyright infringement, or some other clear breach of the law.

Faced with these limitations, some companies like Banc De Binary have gone to extreme lengths to fraudulently claim copyright ownership over a negative review in the hopes of taking it down.

Fake DMCA notices have targeted articles highlighting the criminal activity of prominent people to hide their illegal behavior. These people, which include US, Russian, and Khazakstani politicians as well as members from elite circles including the mafia and those with massive financial power, are all connected – and alleged corruption ranging from child abuse to sexual harassment is exposed when exploring evidence found at these URLs. It appears there’s a disturbing level of influence being exerted here that needs further investigation before justice can be served. Banc De Binary is certainly keeping interesting company here….

The DMCA takedown process requires that copyright owners submit a takedown notice to an ISP identifying the allegedly infringing content and declaring, under penalty of perjury, that they have a good faith belief that the content is infringing. The ISP must then promptly remove or disable access to the content. The alleged infringer can then submit a counter-notice, and if the copyright owner does not take legal action within 10 to 14 days, the ISP can restore the content.

Since these platforms are predominantly based in the U.S., the complaints are typically made under the Digital Millennium Copyright Act (DMCA), which requires online service providers and platforms to react immediately to reports or violations. Big Tech companies rarely have systems in place to assess the merit of each report. Instead, all bad actors need to do is clone a story, backdate it, and then demand the real thing be taken down.

Reputation Agency's Modus Operandi

The fake DMCA notices we found always use the “back-dated article” technique. With this technique, the wrongful notice sender (or copier) creates a copy of a “true original” article and back-dates it, creating a “fake original” article (a copy of the true original) that, at first glance, appears to have been published before the true original.

Then, based on the claim that this backdated article is the “original,” the scammers send a DMCA to the relevant online service providers (e.g. Google), alleging that the ‘true’ original is the copied or “infringing” article and that the copied article is the “original,” requesting the takedown of the ‘true’ original article. After sending the DMCA request, the person who sent the wrong notice takes down the fake original URL, likely to make sure that the article doesn’t stay online in any way. If the takedown notice is successful, the disappearance from the internet of information is most likely to be legitimate speech.

As an integral part of this scheme, the ‘reputation management’ company hired by Banc De Binary creates a website that purports to be a ‘news’ site. This site is designed to look legitimate at a glance, but any degree of scrutiny reveals it as the charade it is.

The company copies the ‘negative’ content and posts it “on the fake ‘news’ site, attributing it to a separate author,” then gives it “a false publication date on the ‘news’ website that predated the original publication.

The reputation company then sent Google a Digital Millennium Copyright Act notice claiming the original website infringed copyright. After a cursory examination of the fake news site, Google frequently accepts the notice and delists the content.

In committing numerous offences, Banc De Binary either premeditated actions or were unaware of the consequences. Despite hiring an agency to make Google disregard any negative information about Banc De Binary, ignorance does not excuse this wrongdoing.

Fake DMCA notices have targeted articles highlighting the criminal activity of prominent people to hide their illegal behavior. These people, which include US, Russian, and Khazakstani politicians as well as members from elite circles including the mafia and those with massive financial power, are all connected – and alleged corruption ranging from child abuse to sexual harassment is exposed when exploring evidence found at these URLs. It appears there’s a disturbing level of influence being exerted here that needs further investigation before justice can be served. FSMSmart is certainly keeping interesting company here.

The Reputation Laundering

Rogue Reputation agencies use spurious copyright claims and fake legal notices to remove and obscure articles linking clients to allegations of tax avoidance, corruption, and drug trafficking. Most of these reputation agencies are based offshore, mainly in Russia, India, and Eastern Europe, and they do not worry about complying with US-based laws.

The content in all of the articles for which the fraudulent DMCA notices have been sent relates to allegations of criminal allegations, including corruption, child abuse, sexual harassment, human trafficking and financial fraud against businesses and individuals with ultra-high net worth.

In addition to the misuse of the DMCA takedown process, there is a notable absence of enforcement concerning perjury violations. The statutory requirement related to perjury is designed to deter copyright holders from submitting fraudulent or knowingly false takedown requests, as they may face legal consequences for making false declarations under penalty of perjury. However, to date, there have been no known instances of any individual being prosecuted for perjury in connection with the submission of false DMCA takedown notices.

This lack of enforcement has emboldened copyright holders to exploit the DMCA takedown process to suppress dissent, criticism, or other unfavorable content, without fear of legal repercussions.

Some of the people and businesses who have employed this tactic to remove legitimate content from Google illegally include a Spanish businessman-turned-cocaine-trafficker, Organised crime, an Israeli-Argentine banker accused of laundering money for Hugo Chávez’s regime, a French “responsible” mining company accused of tax evasion, child molesters and sexual predators. Banc De Binary is in great company ….

What else is Banc De Binary hiding?

We encourage you to ‘Dork‘ Google by searching for keyword combinations such as [Banc De Binary] + {Negative Keyword, such as Scam, Fraud, Complaints, Lawsuit, Sanction, etc} on Google. It’s likely if you scroll down to the bottom of this Google search results, you’ll stumble upon this Legal Takedown notice (pictured below)

To make such an investigation possible, we encourage more online service providers to come forward and share copies of content removal requests with industry experts and researchers. If you have any information on Banc De Binary that you want to share with experts and journalists, kindly email the author directly at [email protected].

All communications are strictly confidential and safeguarded under a comprehensive Whistleblower Policy, ensuring full protection and anonymity for individuals who provide information.