Liquidators called in to protect assets of binary options trading firms

Blog Liquidation

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Two binary options trading companies have been placed into provisional liquidation in order to protect the firms’ assets pending a High Court hearing.

Right Corp Limited and Curve Point Limited are currently awaiting a High Court hearing after winding up petitions were filed against the companies.

“The role of the provisional liquidator is to protect assets in the possession or under the control of the companies pending the determination of the petitions,” said the Insolvency Service.

“The provisional liquidator also has the power to investigate the affairs of the companies insofar as it is necessary to protect assets including any third party, or trust monies, or assets in the possession of, or under the control of the companies.”

Binary options are essentially bets on how an asset will perform in the wider investment market. If the asset increases in value, the better will receive an agreed payout. If the asset loses value, however, the better will lose his or her initial stake. The better can also bet on an asset losing value.

As reported by the Insolvency Service, clients of the companies have been contacted by individuals who are claiming to be acting on behalf of the “liquidator”.

These individuals have told clients that if they were prepared to pay a further amount of money, they would be able to recover sums that they had invested in the companies.

The Insolvency Service advised that clients should not make any such payments, and instead contact the Official Receiver.