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Can I sue an online binary trading options website for refusal to distribute profits won on their website?

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In October of 2013 I joined an online binary trading website named Cedar Finance. I made a deposit of $200 USD initially on the site and lost it. I researched many of the currencies and other options they provided and invested another $250 USD into the website. After a month of trading I had brought the total amount to $7,751 USD. When I tried to withdraw $2,000 USD I was informed that I needed to withdraw the initial deposits back onto my credit card. Once I completed those transactions successfully, I requested to withdraw approximately $4200 USD. I was told that fraudulent activity occurred on my account in October and that no profits would be distributed. I gave them all documentation proving that fraud was not committed & they still refused. What can I do? They are based overseas!

3 Attorney Answers

Best Answer
This sounds fishy, and is most likely a scam. I doubt that you will receive any "profits". Watch your credit card carefully for unauthorized charges.
Best Answer
This appears to be a scam. Run a search on google and you'll see that many are complaining about Cedar Finance (see the link I included as an example). Legitimate foreign businesses operating in the United States will register in the state(s) in which they do business. Those types of businesses can be sued because they will have registered agents on whom you can serve complaints. You could try to track down this type of information about Cedar Finance, but, given what you've said, along with the fact that so many other are complaining that Cedar Finance is a scam, I don't think you'll get very far.
Best Answer
Binary options contracts are illegal in the US and not approved by the CFTC or NFA. This means you likely purchased the options in an overseas market. Which then means you're going to have a hard time getting these people served in an economically reasonable fashion. You might try filing a reparations action with the CFTC but it sounds like you're going to have to go to court. If you signed any agreements to open the account, there should be something in these about either arbitration or where a lawsuit needs to be brought.

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