Ryan Masten of Earn2Trade has been charged with fraud.

The CFTC, or Commodities Futures Trading Commission has charged the owner of Earn2Trade, Ryan Masten with fraud.

In the verified complaint, filed in the Western District of Texas on September 2, is alleging that Masten was partnered with various Israeli citizens and orchestrated a global investment fraud of approximately $233 million dollars.

The complaint alleges that the total damages for investors within the United States is approximately $165 million dollars.

How did the scam work?

According to the CFTC, Ryan Masten was the lead developer for a binary options trading platform that was systematically “rigged” where investors were nearly guaranteed to lose their entire investments.

In particular, the CFTC is alleging that investors essentially believed that they were trading in live, regulated exchanges, with actual counterparties to their trades. Except, there were no legitimate actual counterparties.

The actual counterparties to the trades were actually the owners of the trading platform, who intentionally rigged the game.

The CFTC is alleging that the bid/ask spreads were illegally widened to the investors’ detriment, that profitable trades (which would have cost the company money) were illegally deleted, and that investors were driven into guaranteed losing trades through an elaborate “auto-trading” scheme.

According to the CFTC, Ryan Masten owned approximately 30% of the company, and he received $1,448,209 — at a minimum — in compensation.

The auto trader scheme

The “auto trading” scheme was elaborate, deceitful, and designed to inflict as much financial damage as possible upon its victims.

As the CFTC complaint stated, “Since at least 2012, Ryan Masten, along with his wife, created a website titled: SignalPush.com.

The purpose of SignalPush.com was to convince investors within the United States and elsewhere that they were receiving “top notch trading signals” from “vetted and experienced money managers or financial professionals.”

The CFTC states that there were no “vetted and experienced money managers or financial professionals” involved in any of the “trading signals” offered by Ryan Masten through the SignalPush.com platform.

Instead, the trading signals were specifically devised to quickly and remorselessly churn the trading account with losing trades — thereby draining the account to zero.

Once the account was drained to zero, a “boiler room” operation located in Tel Aviv, Israel would then begin calling and offering “free trades” and “sign up bonuses” to further lure yet more deposits.

The boiler room is described as a sort of “financial slaughterhouse” where telephone sales people would ruthlessly press financially desperate consumers into “taking one more chance” at financial freedom.

The goal was to drain the credit card to zero available credit. The callousness was stunning.

How the money was spent

As you can imagine, the money was wasted as fast as they allegedly stole it.

Although there is a virtual cornucopia on how defendants wantonly wasted the money, it can best be depicted by the social media postings of Joshua Cartu — an alleged partner of Ryan Masten. Below are a few examples of the “unlimited shrimp cocktail.”

Prison for binary options scammers

TradingSchools.Org has written numerous articles about various characters in the binary options industry. In fact, we have filed numerous whistleblower actions against no less than 24 companies located within the United States.

One of our most recent CFTC complaints was filed (November 2019) against F1 Trade, the alleged broker affiliated with known serial fraudster Guy Gentile of Sure Trader. You can read about that here.

Although it took a few months, F1 Trade was added to the CFTC “Red List” warning US consumers on July 16, 2020.

Additionally, TradingSchools.Org was involved with litigation against another well know fraudster named Lee Elbaz. Many people may remember that she sued me for defamation and failed.

A short time after her failure, she was arrested for securities fraud for remarkably similar to allegations contained within this very article.

Lee Elbaz was sentenced to 22 years in Federal Prison on December 19, 2019.

All of this leads to the question — are the perpetrates of this most recent binary options fraud looking at criminal prosecution? More specifically, is Ryan Masten looking at being charged by the US Attorney?

Truthfully, I don’t know. However, I would find it incredible that there is not already a “sealed indictment” already filed. What is a sealed indictment? Essentially, the US Attorney has a limited time frame in which to prosecute a felony. For this sort of fraud, which would be defined under the Dodd Frank Reform Act, the statute of limitations would be 5-years. Sometimes the US Attorney needs to keep the indictment sealed so that they can locate the physical location of the defendents.

If a defendant suspects they have a pending criminal charge, because they are the subject of a CFTC fraud investigation, then they are likely to hide in a country with no extradition treaty with the United States.

In fact, Ryan Masten’s co-defendants are currently in hiding, according to various media sources. The authorities believe that most are hiding in Israel or eastern Europe using alias names.

However, Ryan Masten is a United States citizen. TradingSchools.Org reached out to Ryan Masten with questions regarding the case. He mentioned that he has only been contacted by the CFTC, but has had no contact with the FBI.

Additionally, Mr. Masten categorically denies all of the allegations contained within the complaint. Additionally, he mentioned that the CFTC is attempting to portray him, and his involvement in the worst possible light.

He describes his involvement as minimal. Yet, it was apparent that he is definitely stressed and losing sleep over this.

Although I would like to believe Mr. Masten that “he had minimal involvement,” with his alleged conspirators — it is important to note that Mr. Masten allegedly used the fake name of “Jax Navarro” in an attempt to cover his true identity, according to the CFTC.

What will happen to Earn2Trade?

As many people are aware, Earn2Trade is a business started by Ryan Masten sometime in 2017, which is after his involvement with the binary options industry.

Earn2Trade has a very good reputation within the “funded trader” community. If you are not aware, the “funded trader” business model allows consumers to trade on a simulator and pay a monthly fee of several hundred dollars in hopes of one day “earning a funded trading account.”

Personally, I consider these “funded trader” programs as gimmicky and mainly tailored towards “day dreamers” looking to get rich through day trading.

Unfortunately, most end up in debt with thousands of dollars in credit card bills because day trading is pretty much a game for suckers. Read my article that talks about the abysmal failure rate of day traders.

Regardless of my opinion of day traders and the “funded trader” industry…it is important to note that Ryan Masten has a very good reputation this industry. TradingSchools.Org has received no complaints regarding Earn2Trade.

However, a more important and pressing question pertaining to Earn2Trade needs to be answered. Presumably, there are hundreds of consumers currently participating in these simulated trading “gauntlets” with Earn2Trade, and I would also presume that their are additional parties trading with live accounts under the Earn2Trade banner. What is going to happen to these people if the US Attorney were to indict Mr. Masten and he were arrested?

Additionally, what if the CFTC were to seek a temporary injunction against Mr. Masten, which barred him from any involvement with the Futures trading industry? This could potentially “pull the plug” on anyone currently trading through Earn2Trade.

My hope is that Ryan Masten addresses these issues to the public at large. And also create a contingency plan where if he were to have to suddenly leave the organization, that effective and honest leadership could assume control.

Wrapping things up

It is important to note that although the CFTC complaint is extremely damaging, and it appears that a criminal investigation would be warranted — that all of these are currently just allegations.

Additionally, Mr. Masten has categorically denied the CFTC’s description and alleged level of involvement. In the United States, there is still the presumption of innocence. And sometimes complaints are drafted in such a salacious form and fashion that they bear little resemblance to the truth.

Thanks for reading. And I would love to read your opinion and comments below.

-Emmett

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Truth Crusader
Truth Crusader
4 days ago

ok, wait, this isn’t accurate. .. Earn2Trade deals in futures, not binary options; and there are no legit counterparties ..already options are OTC; then, lol binary ..

Nadex is the only regulated venue.

Here’s the thing, if you wanna trade binary just do European-style options. Same thing (exercise only at exp) and there at least it’s bueno ..or the above ..

sounds like cfd’s ..also, here’s the thing w/ Tradenet. Super sketchy, but i was told if can trade WILL get paid ..

..I don’t care abt Masten only Earn2Trade, not like govt is perfect either (Larry Williams has issues w/ the NFA .. obviously oversight is good, but ..), who wouldn’t lose sleep

.. Day dreaming 😉 is good; are you, really, that, or visualizing .. you can make it if work hard, lot of pain, tears and overnight is possible 🙂 ..just sometimes that o/n takes a decade :D; lol ..but so ’tis possible ..

The percent of succesful traders 2day is no greater today than it was in the past, in fact, it’s prolly lower (Tom Alexander) also, just think how ppl traded then you had daily bars to track; and placed an order unless you were on the floor and, the pctage of floor traders in fact, those having become HFTs if firms like Knight Capital lose millions (100, actually) in a minute? ..yeah.

.. going from terraforming the landscape to m(icro)w(ave)s if even that’s old now ..next is quantum you’re coming right up my alley ..welcome 🙂

E2T is just a portal, like TopStep .. is for Patak Partners I believe, I think, like Traderdock was for Positive Equity, Helios is insulated ..

statement from E2T https://www.facebook.com/earn2trade/posts/2773495269641559

You can have unlimited shrimp cocktail ..I will teach you how ..buy shrimps (under a buck, say; frozen) next purchase Thousands Islands sauce ..And , shit 😀 it’s good, man ..
salacious, well ,heck, just look at the media, man;

Freedom of the press is precious you can’t use it for libel

Echo chamber but we’re not talking abt the polls now; they just went ape with Trump being elected.

..for a v good reason; he threatens their agenda ..

Like who was that new NYTimes editor whose tweets became public, then they hired/kept her on anyway ..

Investigative journalism rocks ..This whole thing began with Kelly absolutely was out of line ..Rosie I rest my case.. then, what Trump said was illegals crossing over and there being criminals and rapists too ..when you go from that to ‘the Mexican thing’ you know you got spin ..

https://web.archive.org/web/20180811120233/http://westernjournal.com/ct/billy-bush-what-nbc-did-trump-tape/

Or the call w/ the Mexican Pres.; yeah, what the media left out was what came next; he thanked Trump ..

Take w/ever the flavor of the day is, parlay/contrast that with the original recording, Trump soundbyte..you will nvr question media bias again.

https://web.archive.org/web/20180819111709/https://www.westernjournal.com/ct/libs-trump-golfing-him-obama/

https://twitter.com/BrandonStraka/status/1149536949662674944

There’s no muslim ban https://web.archive.org/web/20170627190810/https://www.conservativetribune.com/8-facts-trumps-immigration-ban/

Trump’s inauguration crowd the biggest..yeah, ‘cos it was
https://web.archive.org/web/20180928131626/https://www.westernjournal.com/ct/real-photos-trumps-vs-obamas/ I saw this w/ my own eyes ..

alt media is great ..same shit w/ the injecting ..

oh, btw, having previously defended S. Townshend the chart reading webinar you may see advertised on youtube ..is good, no, it absolutely is true. He gives us two options, i chose to checkout early, so can vouch for it ..

Emmett
Emmett
1 day ago
Reply to  Truth Crusader

Wow, that was quite a lot to digest in one sitting.

Last edited 1 day ago by Emmett Moore
I-Am-Not-A-Robot
I-Am-Not-A-Robot
7 days ago

Hello,

I was just about to join The Gauntlet, but have some doubts.

1) Apparently he is no longer involved with Earn2Trade company. Do you think it could further affect the company and their prop trading arm negatively? Could it be also taken into scrutiny by regulators? Can it be shut down because of the connection?

2) [quote] Earn2Trade has a very good reputation within the “funded trader” community. If you are not aware, the “funded trader” business model allows consumers to trade on a simulator and pay a monthly fee of several hundred dollars in hopes of one day “earning a funded trading account.”

Regardless of my opinion of day traders and the “funded trader” industry…it is important to note that Ryan Masten has a very good reputation this industry. TradingSchools.Org has received no complaints regarding Earn2Trade. [/quote]

As a foreigner who wants to trade with US company, I am not an expert in legal issues and regulations. I just need remote access to capital. I’ve seen some talk on the internet that a prop firm need to be registered at NFA / be an exchange member or the traders need to pass some exams. Can I take the above as a confirmation that there are no regulatory issues with this type of funding companies? Is it legal? Let’s say I traded with the company and withdrew my profits but it turns out the company was not operating in line with regulations. Was I doing something illegal from my side without being aware?

I-Am-Not-A-Robot
I-Am-Not-A-Robot
5 days ago
Reply to  Emmett Moore

Thanks a lot – appreciate your response

John Walters
John Walters
9 days ago

lock him away ! there are many others like him out there. well done on putting article forward and thanks !

Bob
Bob
10 days ago

Wow. If he’s not been involved since July why didn’t he say that to Emmett when he spoke to him?

JJ TripleJ
JJ TripleJ
10 days ago

Never joined Earn2Trade. I did notice that each month they are offering discounts on
their programs. At the moment it looked as a bid to get more customers.
But with this information, I think they knew they are under CFTC investigation.

Did you know that Ryan also connected Finamark trading software? If not mistaken it is his
brother there. He also had some investment firm Masten Lojk0. There is from my view,
a lot of problems hidden there.
And that he had been listed as CTA? And check Oasis Holdings LTD LLC.

Earn2Trade
11 days ago

Statement on Allegations of Personal Wrongdoing by Former Co-Founder

September 2nd, 2020

On September 2nd, 2020 the CFTC charged the former co-founder of Earn2Trade, Ryan Masten of violating CFTC regulations on several counts. None of the alleged incidents took place during Ryan’s ownership of Earn2Trade, nor had they any connection to Earn2Trade. By April, 2019, Ryan was already a fractional minority shareholder in Earn2Trade, and on July 1st, 2020 his final shares were purchased and he was no longer a shareholder in the company.

Earn2Trade is saddened to hear of the allegations against its former co-founder.
Earn2Trade strongly rejects the alleged activities and rejects unregulated Binary
Options trading in its entirety. Despite the current allegations, Ryan’s tenure at
Earn2Trade was a successful one. He helped build a great company and we are
proud today of what we have accomplished.

Earn2Trade prides itself on providing an objective examination and an equal
opportunity for retail traders around the world to test themselves and become
professional futures traders. We stand by the outstanding work our company
does every day, and we remain committed to providing a fair environment for
retail traders to test themselves and enter the world of trading.

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