The German law enforcement team in Koblenz, together with Europol and Eurojust and the support of their fellow agencies in Spain, Bulgaria, and Israel, evidently crushed the cybercrime network related to Tradorax, KayaFX, and LibraMarkets. Europol reported the action but remained silent about the targets. FinTelegram learned that the targets had been the boiler rooms, illegal payment processors, and beneficial owners connected to this cybercrime network. We are still waiting for confirmation details, but we assume that our insider information is correct.
Big Scam Business
According to Europol press reports, 11 people were arrested in Bulgaria, Spain, and Israel. According to the current state of the investigation, the deposits received by the cybercrime network are said to have amounted to up to €150M worldwide. Investors in Europe are said to have lost around €30M.
The Cybercrime Network
In December 2019, BaFin warned against the LibraMarkets scam (www.libramarkets.com) and the Estonian operation Yield Enterprise Currency Software OÜ. The company’s director was the Bulgarian Petar Borislavov Zlatkov (see this FinTelegram report) for some time. On 8 June 2020, BaFin issued a Cease and Desist Order against the company and ordered it to immediately stop the operation of the broker scam ProuFX (www.proufx.com) a/k/a UProFX.
Petar Borislavov Zlatkov also used to be the director of Estonian GammaTech Services OÜ, which has operated the huge KayaFX binary options scam. A confirmed beneficial owner of the KayaFX scheme was the Israeli Avi Itzkovich (aka Avi Itzkovic or Avi Itzkovitz). He has operated illegal boiler rooms in Bulgaria via Mercure Group EOOD (formerly RAX Media EOOD) and attacked small EU investors.
|Company||Jurisdiction||Brand / Trading Style||Remarks|
|Alagos Limited||Gibraltar||Tradorax (TDorax)||first offshore|
|AM Capital Ltd||Marshall Islands||Tradorax (TDorax)||offshore, a shareholder of BetaTech EOOD and Alpha Capital House Ltd|
|BetaTech EOOD||Bulgaria||Tradorax (TDorax)||frontend, shares held by AM Capital|
|Comunico88 DOO||Serbia||Comunico88||Boiler room|
|Alpha Capital House Ltd||United Kingdom||Tradorax (TDorax)||frontend, shares held by AM Capital|
|GammaTech Services OÜ||Estonia||KayaFX||Director Petar Borislav Zlatkov (Bulgaria)|
|NovaTrades Ltd||Marshall Islands||NovaTrades, InstaFX24||operator|
|InstaFX24 Ltd||Marshall Islands||InstaFX24||operator|
|EZCryptoplace Limited||United Kingdom||EZCryptoPlace, EZCrypto Place||operator, compulsory strike-off Nov 2020|
|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, previously known as Rax Media EOOD|
|ABC Global EOOD||Bulgaria||Tradorax, KayaFX, KontoFX, Libra Markets||boiler room|
It is currently unclear which of the many scam brands operated by this network and its boiler rooms will be investigated by the Law Enforcement Team in Koblenz. However, we hope to learn more about this shortly.