During March this year, the Court entered the Order to Show Cause from EZTD, Inc. to show cause why the Final Commission order requiring EZTD to disgorge $1,515,858 and prejudgment interest of $57,691, and also pay a civil penalty of $200,000, and injunctive relief, should not be granted.
The penalty stems out of a matter between EZTD’s offers and sales of binary options to US customers, involving June 2011 and August 2014, through EZTD’s two online trading platforms, eztrader.com along with globaloption.com. The options which were the topic of the offers and earnings were the-counter, cash-settled alternative contracts. They did not give the holder the right to purchase or sell the resources and their period duration was restricted. These binary choices constituted securities.
A Status Report filed with the Court, this past week. The record says , on May 9, 2019, the Commission won’t agree to the entry of decision, and discovered that new counsel has been retained by EZTD.
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EZTD is a Delaware corporation having a principal place of business from Tel Aviv, Israel and Nicosia, Cyprus,” SEC explains.
EZTD has been served two months back, also the Commission notes that this is really a summary proceeding and has had time to respond to the Court’s Order.
Accordingly, the SEC asks the Court reset the hearing date and briefing schedule. The proposed arrangement claims that if EZTD neglects to file opposing papers and/or look at the scheduled hearing, it may be found by the Court option and enter an order from it without further notice being given.
Lawsuits against binary choices firms and the individuals behind them become more numerous, as the US governments continue with their efforts to put a stop to binary choices fraud. One of those activities, brought on by the United States Securities and Exchange Commission (SEC) in the Delaware District Court, targets binary choices company EZTD, with the US regulator seeking to compel the company to cover the full civil financial penalty and disgorgement levied on it back from 2016.