Jan. 14, 2017 – News broke this week that the Banc De Binary (BDB) will be closing its doors for good. Since their inception, they have faced a constant array of issues including several lawsuits. Although they were one of the very first binary options brokers, their reputation has been taking hit after hit. It has reached a point where they felt it is no longer worth staying in business.
The company has been having difficulties dealing with the problems that they have been facing. The fines that they have been fighting are having a net negative impact on them. It has reached the point where the best option is to shut things down and move on.
One such lawsuit involved being fined by Cysec for €350.000. In another, BDB was forced to pay out $11 million in fines for taking in US customers, which was forbidden at the time. In addition to those fines, another significant hit came when the BDB’s founder was charged with $150,000 in fines. These fines quickly began to pile up and they push the broker past the tipping point.
One insider confirmed the motivation behind closing their doors. FinanceMagnates explained that the damage that the company was taking him is not worth the reputation that they had to carry around.
Since the announcement, BDB has ceased the acceptance of any new accounts. In the meantime, they are working to get the funds returned to all of their account holders. Returning all of the funds to their account holders will take a long time, but the expectations are that they will be able to recover and return all of the money that customers have put into their system.
This will have a significant impact on the binary options industry. BDB is a $500 million company and they are about to close their doors. Experts are concerned about the impact this will have throughout the world of binary options trading. In a place where consumers are skeptical of the nature of binary options trading, a firm this large closing like this will only lead to further skepticism.
If you are a customer of BDB, we would recommend that you login and try to withdraw your funds as soon as you can. Although we do not anticipate any of these account holders having a problem withdrawing your funds at any time, there have been cases where companies had trouble recouping all of the money that was deposited in through their accounts. It is better to err on the side of caution and withdrawal as soon as possible.
The impact of this will be felt for years to come. Although binary options trading is a perfectly legitimate way to invest and increase your income, people will look at things like this and hesitate the next time they are thinking about getting involved with this industry. It is a black eye on what is otherwise a perfectly legitimate form of investing.