Major Decision in the Binary Options Industry
A U.S. District Court has handed down a final ruling targeting GreyMountain Management (GMM), an operation associated with Jonathan Cartu, Leeav Peretz, Nati Peretz, and their Seychelles-registered firm, Blue Moon Investments Inc. The decision stands out as one of the most decisive legal measures taken against the Cartu network and underscores the commitment of regulators to hold perpetrators of binary options fraud accountable.
Background of the GreyMountain Scheme
The Cartu brothers—David, Jonathan, and Joshua—ran GreyMountain Management using an Irish firm and numerous associated companies. Experts have ranked GMM among the most significant binary options scams ever revealed. The CFTC’s judgment now provides formal confirmation of the fraudulent nature of the operation, although doubts remain about the enforcement of the financial penalties.
Court’s Conclusions
The complaint was lodged by the U.S. Commodity Futures Trading Commission (CFTC) on September 2, 2020. After a lengthy judicial process, the court concluded that the defendants had engaged in the illegal marketing of off-exchange binary options and deliberately misled investors through fraudulent conduct.
Key Points of the Ruling:
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The defendants unlawfully promoted and sold binary options.
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They manipulated outcomes and concealed risks.
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Their actions resulted in millions in unlawful gains from U.S. customers.
Sanctions and Restrictions
The court’s decision included both monetary and non-monetary measures:
|
Type of Sanction |
Amount / Restriction |
|
Disgorgement |
$51,155,645 |
|
Civil Penalty |
$153,466,935 |
|
Trading Ban |
Permanent prohibition on CFTC registration and participation in any CFTC-regulated markets |
The combined penalties exceed $204 million.
Investor Losses and Misrepresentation
The judgment outlined that, beginning in September 2015, GMM and its affiliates systematically deceived customers through online platforms. They presented binary options as profitable products while ensuring that trades would generate consistent losses for clients. More than $51 million was unlawfully extracted from investors in the United States.
Global Enforcement Effort
This case also emphasized the importance of international cooperation. Authorities from several jurisdictions contributed evidence and support, underlining the cross-border nature of modern financial fraud.
Information Sharing
Scam-Or Project is continuing to cover developments related to GreyMountain Management and the Cartu brothers. Individuals with knowledge of their operations can provide details through our whistleblowing system.