Legal action in Britain
A group of binary options investors including Ali is now taking legal action in Britain against BinaryBook, claiming the company has misled them and refused to release their money when requested. If successful the case could open the floodgates to thousands of claimants who say they have been ripped off by binary options websites around the world.
Richard Howlett of London-based law firm Selachii LLP is representing the investors. He was approached in 2015 by a US client who said BinaryBook shut down his account after he threatened to sue the broker for denying his withdrawal requests.
The client, a 64-year old cabinet maker from Virginia, claims he accumulated $47,000 from investments with BinaryBook but when he tried to cash out he was unable to.
BinaryBook uses the name of a UK-registered marketing company, WSB Investment Ltd, in various publicity materials – so Howlett made an application with British authorities for that company to be wound up.
A winding up order was granted in March 2016 and Howlett was appointed by the liquidators to act for all the company’s creditors – wherever they might be.
“We have since been contacted by people from all over the world, who have lost a few hundred pounds to over a million dollars,” he said.
Many of the creditors say they have been denied access to their money.
Some have come forward from as far afield as Tasmania, Australia, where the country’s police say a 77-year old man was “scammed” out of $250,000 by BinaryBook.
Selachii and the liquidators are still seeking creditors. Howlett said: “I suspect a lot of people are being naive and do not want to believe they have lost their money. I would encourage anyone who thinks they have an outstanding investment held by BinaryBook to contact my firm or the joint liquidators to register their interest.”