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Former Binomo affiliates talk temptations, tribulations of investment scams
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Suspect trend: Indonesian regulators say binary options trading is closer to gambling than real investment. Recently, the practice has made waves as influencers promote scam trading platforms. (Unsplash/Burak Kebapci) (Unsplash/Burak Kebapci)
F
ormer representatives of the platform share stories of desire and regret after getting clients (and themselves) roped into a gambling-like scheme.
For a few weeks, it was the talk of Indonesian social media. Binary option “influencers” Indra Kenz and Doni Salmanan had had their assets confiscated by the authorities.
Both were affiliated with Binomo, a binary options trading platform that had run into significant legal trouble for allegedly being closer to gambling than investment. The two influencers had been dubbed “crazy rich Indonesians”, a reference to the Hollywood film Crazy Rich Asians, which depicts a world of wealth and excess.
According to the Financial Services Authority (OJK), the Indonesian public has lost Rp 117.5 trillion (US$8.3 billion) through investment products in the last 10 years.
“We’re really hoping that we can get our money back,” said Maru Nazara, a victim of a predatory binary options scheme by Binomo. Maru lost Rp 500 million ($34,836.75) in 2021.
“I thought it was real trading because the influencers showed how they traded and showed off their bank accounts. The quick profit seemed really lucrative,” he added. “I was brave enough to report the issue to the police, because there are a lot of other victims.”
Binary options trading is illegal in Indonesia, as authorities consider the system akin to gambling. Relying on the outcome of a "yes or no" proposition, traders profit if their choice is correct and lose if it is not.
