Abstract：The Israel Securities Authority launches a criminal probe into Pocket Option for illegal binary option activities, exposing investor losses and fraud.
Israel Securities Authority Targets Pocket Option Scheme
The Israel Securities Authority (ISA) has opened a criminal investigation into several Israeli citizens suspected of illegally promoting the unlicensed binary options platform Pocket Option, reigniting scrutiny of a sector Israel banned years ago for rampant investor abuse.
Banned Trading Resurfaces Through Social Media
Binary options trading was outlawed in Israel in 2016 after widespread fraud wiped out investors savings. A year later, regulators barred Israelis from marketing such schemes abroad. Despite the clampdown, the ISA says Pocket Option has continued to solicit local traders online, using misleading claims of quick profits and high returns.
Pocket Option operates from overseas and holds no trading license in Israel. As an unregulated derivative platform, it allows users to speculate on short-term asset movements—positions so volatile that investors often lose their entire deposits within minutes.
Criminal Allegations and Enforcement Action
According to the ISA, suspects have allegedly enticed clients via social media channels since 2023, spreading false information to lure investors into trading illegal instruments. Offenses under investigation include fraud, money laundering, and offering unlicensed investment services.
Regulators have executed searches, evidence seizures, and detentions, imposing restrictions on those under investigation. The ISA emphasized that such enforcement steps are part of an escalating effort to deter attempts to revive Israels discredited binary options trade.
Public Warning on Fraudulent Platforms
Authorities have repeatedly cautioned investors against engaging with unlicensed online brokers that promise unrealistic profits. The ISA reminded the public that any platform marketing trading opportunities without Israeli regulatory approval violates the Securities Law.
Pocket Option, previously cited in ISA advisories, exemplifies how offshore operators exploit digital marketing loopholes to target Israeli citizens in defiance of domestic bans.
Global Crackdown on Binary Trading and Event Contracts
While Israel enforces a zero-tolerance policy, other global regulators are tightening oversight. In the United States, binary options are allowed only under strict federal supervision. The Commodity Futures Trading Commission (CFTC) has increased probes into event-based trading, including political and sports contracts, and is investigating major operators like Crypto.com and Kalshi.
Retail brokerages such as Robinhood have suspended certain event contracts following regulatory pressure, reflecting international unease over these speculative products potential for manipulation and consumer harm.
Regulatory Outlook
Analysts note that the ISA‘s latest crackdown signals a renewed compliance offensive that could reshape how digital trading products are policed across the region. With binary options repeatedly resurfacing under new guises, the authority’s aggressive stance underscores enduring vulnerabilities in cross-border financial regulation.
In an environment where fraudulent schemes evolve faster than laws, the ISAs investigation serves as a stark reminder: the binary options era may be over in Israel, but its risks are far from gone.
