Friday, November 8, 2024

UK Lawyer Targets Vanished CySEC-Firm Broker 24Option!

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Giambrone & Partners, a law firm with a strong track record in financial fraud litigation, is currently involved in a group litigation against Rodeler Ltd, a CySEC-regulated investment firm trading as 24Option. Allegedly, Rodeler violated numerous regulations, pressuring inexperienced investors into risky trades later identified as fraudulent. Consequently, the FCA prohibited 24Option from conducting regulated or marketing activities in the UK.

Rodeler and F1Markets broker network

The FCA’s decision included closing all trading positions, notifying clients of the cessation of investment services, returning all balances held by the firm, and publicly stating on its website that it could no longer provide regulated financial services to UK residents.

The FCA highlighted that 24Option, as a Cyprus-registered firm, had violated its obligations under the Markets in Financial Instruments Directive (MiFID), implemented under Cypriot law. The firm’s failure to conduct proper assessments, use of misleading marketing materials, and fake celebrity endorsements immediately enforced the FCA’s requirements. It is believed that UK investors may have lost hundreds of thousands of pounds in contracts for difference (CFD) investments suggested by 24Option.

Following the FCA’s lead, CySEC and the Italian regulator CONSOB also barred 24Option from trading.

Joanna Bailey, head of Giambrone & Partners‘ financial fraud litigation department, emphasized that 24 Option had disregarded regulatory constraints related to advising novice investors. She noted that the firm had encouraged inexperienced investors to trade in risky financial products like CFDs. Group litigation is now being planned to help victims recover their lost funds.

This has not occurred despite the FCA’s order to liquidate positions and return cash balances to UK clients. It is doubtful that Rodeler Ltd will comply with the FCA’s decision and return the victims’ funds without legal enforcement.