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EFRI Update – From Tradorax via KayaFX and KontoFX to Libra Markets

Spread financial intelligence

FinTelegram and EFRI launched the EFRI campaign in April 2019 to recover money for defrauded investors of the broker scam KayaFX. Since then we have received a lot of information from victims, which slowly but surely gives the big picture of this Bulgarian-Israeli broker scam scheme. In fact, the people behind this scam have been doing their work since 2014. In the beginning, there was Tradorax with binary options and its operating company Alagos Limited (Gibraltar). Since then the companies and domains (Trading Styles) have changed but the fraud is still the same.

Changing brands and Israeli boiler rooms

It is important to understand that the trading styles (brands and domains), operating companies and frontline personnel change frequently while the boiler rooms behind remain the same. Customer data is exchanged or sold between the different trading styles. According to the information available to us, the boiler rooms – these call themselves marketing companies or BPO providers – behind Tradorax and the successor brands were and are the two Bulgarian companies Mercure Group EOOD (formerly Rax Media EOOD) and ABC Global EOOD. Both operate huge boiler rooms in Sofia with dozens of employees.

Like E&G Bulgaria of the Israeli Gal Barak, the operators behind the boiler rooms are Israelis. Mercure Group EOOD with the company no 202913389 was established in Sofia, Bulgaria, as RAX Media Ltd (РАКС МЕДИА) in January 2014 by Avi Itzkovich (Itzkovic) and James Henry Vigottski (Wygodsky). The members of the company’s management team as listed in the Bulgarian companies register is a. We will deal in detail with the persons involved in this scheme in a separate report.

Financial Regulator warnings

The financial market supervisory authorities have issued numerous warnings against the illegal and fraudulent trading styles and their operators. Below is a list of some warnings:

Date Regulator Brand Companies or Address
Feb 1, 2019 FMA Austria KontoFX NMTM Transformatic Markets OÜ
April 3, 2019 FMA Austria EZCryptoPlace
Feb 1, 2019 FMA Austria KontoFX NMTM Transformatic Markets OÜ
May 10, 2019
Sep 27, 2018
FCA UK KontoFX, EZCrypto Place NMTM Transformatic Markets OÜ
May 10, 2019 MFSA Malta KontoFX, EZCrypto Place Northside Business Centres, 2nd and 4th floor, BC91 Office building, Budapest 1139, Hungary
March 26, 2019
March 29, 2018
FCA UK KayaFX GammaTech Services OÜ
March 18, 2019 CNMV Spain UK KayaFX AlphaTec Ltd
April 8, 2019 CNMV Spain UK UproFX

The publication dates of the investor warnings above show that this broker scam scheme is still active today and that regulators are still busy dealing with the many complaints. It should be noted that in the period before 2016 the regulators did not fully recognize the potential of binary options scams.

Therefore, the number of public warnings before 2016 is rather low. The discovery of fraud often takes months for investors and the regulators are only put on track by the complaints of cheated investors. In this respect, there is sometimes a massive time lag between the time of committing the fraud and a public investor warning by regulators.

Involved companies and brands

Company Jurisdiction Brand or Trading Style Remarks
Alagos Limited Gibraltar Tradorax (TDorax) first offshore
AM Capital Ltd Marshall Islands Tradorax (TDorax) offshore, shareholder of BetaTech EOOD and Alpha Capital House Ltd
BetaTech EOOD Bulgaria Tradorax (TDorax) frontend, shares held by AM Capital
Alpha Capital House Ltd United Kingdom Tradorax (TDorax) frontend, shares held by AM Capital
GammaTech Services OÜ Estonia KayaFX Director Petar Borislav Zlatkov (Bulgaria)
AlphaTec Ltd unknown KayaFX frontend
NovaTrades Ltd Marshall Islands NovaTrades, InstaFX24 operator
InstaFX24 Ltd Marshall Islands InstaFX24 operator
EZCRyptoplace Limited Marshall Islands EZCryptoPlace, EZCrypto Place operator
NTMT Transformatic Markets OÜ Estonia KontoFX, EZCryptoPlace, EZCrypto Place operator, director Petar Borislav Zlatkov (Bulgaria)
Yield Enterprise Currency Software OÜ Estonia UproFX, Libra Markets operator
Mercure Group EOOD Bulgaria Tradorax, KayaFX, KontoFX, Libra Markets boiler room formerly known as Rax Media EOOD
ABC Global EOOD Bulgaria Tradorax, KayaFX, KontoFX, Libra Markets boiler room

Report your claims with EFRI

If you are a victim of these Broker Scams and its different trading styles, please register with our European Fund Recovery Initiative (EFRI). We are also grateful for all information regarding these brokers, their perpetrators and beneficial owners, payment services partners and co-conspirators. Together we can work through this huge scam, hold those responsible accountable and reclaim your money.

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