Binary Options Legacy: The German Trial Against The LibraMarkets Scheme And Its Impact!

LibraMarkets Cybercrime Network
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The days of the fraudulent Israeli binary options industry are over in 2018, and many of the firms have disappeared. Millions of investors worldwide were harmed, and the damage could have been as high as $50 billion. However, the legal process is still ongoing in many jurisdictions and will result in many more trials. The German prosecutors in Koblenz filed charges against Israeli Avi Itzkovich and James Henry Wygodzki. They are accused of establishing and running a vast cybercrime network. Both allegedly plead guilty.

The Never-Ending Fraud Stream

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We recently referred to the cybercrime network around Avi Itzkovich and James Henry Wygodksk as the LibraMarkets network. It’s difficult to name these cybercrime organizations given the number of fraudulent brands they have operated. During 2014 and 2021, this Israeli-controlled LibraMarkets network has been connected with many other major binary options scam brands. It started around 2014 with Tradorax (TDorax), continued with KontoFX, KayaFX, InstaFX, InstaFX24, NovaTrades, UProFX, ProuFX, or EZCryptoPlace. LibraMarkets was one of the last fraud brands they operated before it collapsed.

While the brands with the operating legal entities – mostly just empty offshore front companies with nominee directors and shareholders – disappeared when too many victims complained, the boiler rooms behind them remained the same. These boiler rooms and their payment facilitators have been the real attackers and fraudsters behind the thousands of binary options schemes.

The Boiler Rooms

At the center of this LibraMarkets cybercrime network were the boiler rooms in Bulgaria around Mercure Group EOOD (formerly RAX Media EOOD) and ABC Global EOOD.

The Bulgarian companies register shows that, in addition to Itzkovich and Vygodzki, Maor Ben-Zvi, Daniel Koen, Jonathan Grinfeld, Or Tal Shlomei, Erez Legerbaum, Tal Kerzfeld, Moran Kerimov, Michael Zalk, Eden Sror, Daniel Natan Huluban Mandl, Avraham Aviv Hileli, and Dror Geht have been registered as managers in the Bulgarian company register.

All of these individuals were responsible for tens of thousands of victims of various binary options brands as boiler room managers. It will become clear in the course of the trial and further investigations in Koblenz how far the charges will go. A complete clarification in the sense of the victims is desirable.

The Addictive Fraud Environment

Between 2014 and 2018, Sofia in Bulgarian and Belgrade in Serbia were the centers of illegal boiler rooms behind fraudulent binary options brands. The boiler room agents were called financial advisors or brokers and were talented local young people (mis)led by their Israeli managers.

Legendary were the parties at the Israeli boiler room managers in Belgrade. Alcohol and coke flowed in streams on the party ships on the Danube. The situation in Sofia was similar. Some of the accused Israeli boiler room managers, like Jacki Fitelzon (report here), told the court that they became addicted to drugs and alcohol during their fraudulent activity. Fitelzon was one of the boiler room managers of Gal Barak‘s Israeli E&G Bulgaria and was sentenced to 82 months in prison in January 2022. He has asked the court to transfer him to a rehab center in Israel.

The Tradorax Beginning

Tradorax binary options scheme exposed

The binary options scheme Tradorax (later TDorax) was launched in 2013 by Alagos Limited, Gibraltar. From 2015 until it vanished around 2016, the scheme was operated via AM Capital Ltd, Anguilla, and the Marshall Islands. This company’s sole shareholder and director was the Swedish citizen Per Gunnar Astrom, against whom prosecutors in several jurisdictions took action.

During this period, the Bulgarian boiler room operator Mercure of Avi Itzkovich and James Henry Wygodzki operated Tradorax and TDorax, ensuring that thousands of victims lost many millions.

The Fraud Table

CompanyJurisdictionBrand / Trading StyleRemarks
Alagos LimitedGibraltarTradorax (TDorax)An offshore entity operating the brand
AM Capital LtdMarshall IslandsTradorax (TDorax)offshore, a shareholder of BetaTech EOOD and Alpha Capital House Ltd
BetaTech EOODBulgariaTradorax (TDorax)frontend, shares held by AM Capital
Alpha Capital House LtdUnited KingdomTradorax (TDorax)frontend, shares held by AM Capital
GammaTech Services OÜEstoniaKayaFXDirector Petar Borislav Zlatkov (Bulgaria)
AlphaTec LtdunknownKayaFXfrontend
NovaTrades LtdMarshall IslandsNovaTrades, InstaFX24operator
InstaFX24 LtdMarshall IslandsInstaFX24operator
EZCryptoplace LimitedUnited KingdomEZCryptoPlaceoperator, compulsory strike-off Nov 2020
NTMT Transformatic Markets OÜEstoniaKontoFX, EZCryptoPlaceoperator, director Petar Borislav Zlatkov (Bulgaria)
Nordindustries OÜEstoniaKontoFXoperator, director Ivan Simeonov Iliev
Yield Enterprise Currency Software OÜEstoniaUproFX, EZCryptoPlace, Libra Marketsoperator, director Petar Borislav Zlatkov (Bulgaria)
Mercure Group EOODBulgariaTradorax, KayaFX, KontoFX, Libra Markets et alboiler room operator in Bulgaria, previously known as Rax Media EOOD
ABC Global EOODBulgariaTradorax, KayaFX, KontoFX, Libra Marketsboiler room operator in Bulgaria

Share Information

Over the next few weeks, we plan to accompany the upcoming trial with coverage of the binary options people who have disappeared. If you have any information about this, please let us know via our whistleblower system, Whistle42.

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