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German Trial Against Israeli Binary Options Scheme Around KontoFX About To Launch!

Trial against Jacki-Tal Fitelzon starts
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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.

BaFin issues new cease and desist order against KayaFX operators

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.

CompanyJurisdictionBrand / Trading StyleRemarks
Alagos LimitedGibraltarTradorax (TDorax)first offshore
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 KingdomEZCryptoPlace, EZCrypto Placeoperator, compulsory strike-off Nov 2020
NTMT Transformatic Markets OÜEstoniaKontoFX, EZCryptoPlace, EZCrypto Placeoperator, director Petar Borislav Zlatkov (Bulgaria)
Nordindustries OÜEstoniaKontoFXoperator, director Ivan Simeonov Iliev
Yield Enterprise Currency Software OÜEstoniaUproFX, Libra Marketsoperator
Mercure Group EOODBulgariaTradorax, KayaFX, KontoFX, Libra Marketsboiler room, previously known as Rax Media EOOD
ABC Global EOODBulgariaTradorax, KayaFX, KontoFX, Libra Marketsboiler room

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If you have any information about this cybercrime case, please let us know through our whistleblower system, Whistle42.

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