Binary Defrauded Investors Amid Coronavirus Outbreak

For more than a month, the global stock market has been in a “big earthquake” due to the continuing impact of the COVID-19. US stocks were hit hard last week, with Dow, Nasdaq and S&P 500 falling into bearish range, while the VIX (panic index) rose to its highest level in recent years.

S&P 500 INDEX Monthly Chart

However, the spread of the Coronavirus, the gloom of the stock market and the panic sentiment of the market have been exploited by some scammers to generate profits. Recently, an investor exposed Binary on WikiFX Channel, revealing how this broker defrauded his deposit and blew up his account. As a victim, he hopes no one will get scammed anymore.

Illegal Broker Exposure

According to the investor, he first learned about Binary through John, the administrator of Telegram group “VOLATILITY 75 INDEX SIGNAL” who turned out to be a scammer in the end. John often shares screenshots of his profits in the group as a bait. When John learned through a casual chat that the investor had some assets and little trading experience, he insisted that the bear market would drive the VIX index up, and it was a perfect chance to “make a lot of money”. The investor told WikiFX that John offered to manage his trading account as long as he opens an account and deposits to Binary, which he agreed. But within an hour, John blew up investors account balance of over US$500. He then slipped away, leaving the investor at loss.

The balance of investors account

The investor lost contact with John

Illegal Broker Analysis

Founded in 1999, Binary provides an online trading platform for binary options in major currencies, indices, commodities and composite indices. In the eyes of professionals, binary options are no better than gambling under the facade of financial instrument, giving people the wrong impression that they are investing in futures or options. Most of the binary option platforms have been either warned or banned by multinational regulatory authority and are expected to be eliminated eventually. Binary must have seen the opportunity amid Coronavirus outbreak. But the cunning broker dares not defraud investors in an explicit way, instead, it created several groups on FB, Telegram, WhatsAPP and other social media, attempting to sell fake trading signals to attract the potential victims. Some of its groups include “VOLATILITY 75 INDEX SIGNAL”, “VOLATILITY TRADER”, etc.

Telegram group “VOLATILITY 75 INDEX SIGNAL”

Facebook group “VOLATILITY TRADER”

Conclusion

Per investigation, we found that the score of Binary is only 3.62 on WikiFX APP. According to the latest risk warning, the Japan FSA license claimed by this broker is suspected to be a clone, while the Vanuatu‘s VFSC license and the Virgin Islands’ FSC license are under offshore regulation, indicating huge hidden danger. Please stay away!

The score of Binary on WikiFX APP

https://www.wikifx.com/us_en/

Up to now, WikiFX APP has included profiles of more than 16,000 global forex borkers, while integrating inquiry, exposure information update and other functions to ensure the safety of investors funds 24/7. Click here to download the WikiFX APP. https://www.wikifx.com/us_en/