In May 2021, in cooperation with Europol and Eurojust, the Koblenz Prosecutor’s Office conducted an Action Day against a huge Israeli binary options scam network. After more than a year of investigations, the Prosecutor General has filed charges against the operators of the binary options scams centered around KayaFX and KontoFX. As one of the main perpetrators, the prosecutors consider Israeli Avi Itzkovich, who, together with his partner James Henry Wygodzki, is said to have founded and led the criminal organization.
The Court Case
The cybercrime organization operated boiler rooms in Bulgaria. Mercure Group EOOD (previously Rax Media EOOD) was established in Sofia, Bulgaria, in January 2014 by the Israeli Avi Itzkovich (Itzkovic) and his Belgian partner James Henry Vigottski (a/k/a James Henry Wygodski).
Itzkovich and Wygodzki have pleaded guilty and intend to provide substantial assets for restitution payments. Furthermore, in addition to the two principals, boiler room employees, two office managers, and the former chief technology officer have also been charged for their involvement in the cybercrime organization.
It is currently unknown whether charges will also be filed against the other Israeli managers of the Bulgarian boiler room operator Mercure Group. 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 are also registered as managers in the Bulgarian company register.
The Cybercrime Network
The cybercrime organization around KontoFX has been huge and has included numerous companies and brands. In this context, we currently do not know in detail against which brands and individuals the public prosecutor’s office in Koblenz will investigate and file charges.
|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|
|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)|
|Nordindustries OÜ||Estonia||KontoFX||operator, director Ivan Simeonov Iliev|
|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|
If you have any information about this cybercrime case, please let us know through our whistleblower system, Whistle42.