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KayaFX legacy – amidst law enforcement actions websites went offline

broker scam evoltion Tradorax to Grandefex
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Between 2017 and 2019, the KayaFX broker scam was one of the biggest scam brands in Europe in the binary options era. Tens of thousands of victims probably lost tens of millions of euros to the scam. Among them were many Spanish victims. Hence, Spanish law enforcement authorities have been investigating KayaFX, related brands such as WDC Markets, GrandeFX, Grandefex, Libra Markets, the involved boiler rooms, and facilitating payment processors since 2018. Recently, most of the websites went offline amidst law enforcement action in different jurisdictions.

Scammers, co-conspirators, and facilitators

According to the information on the website at the time, FIU-licensed Estonian GammaTech Services OÜ and later AlphaTec Ltd, United Kingdom, were the operators of KayaFX (www.kayafx.com). In a criminal complaint filed by a victim, Per Gunnar Astrom, Jacques Henry, Avi Itzkovitz (a/k/a Avi Itzkovich), and Yael Fox were named the KayaFX scam operators.

Broker scams like KayaFX function as an opaque network of domain and website owners, boiler room operators, payment processors, and marketing companies. In this respect, it is difficult to make a distinction between specific scam brands. Scammers and co-conspirators they all are. KayaFX apparently used boiler rooms in Bulgaria and the Balkans.

The KayaFX scam is also said to be related to the KontoFX, UProFX, Tradorax, InstaFX and other scams. Below is a list of the entities and brands related to the KayaFX network.

CompanyJurisdictionBrand or Trading StyleRemarks
Soleil Rouge IncCommonwealth of DominicaGrandefexoffshore operator
Alagos LimitedGibraltarTradorax (TDorax)offshore operator
AM Capital LtdMarshall IslandsTradorax (TDorax)offshore, shareholder of BetaTech EOOD and Alpha Capital House Ltd
BetaTech EOODBulgariaTradorax (TDorax)operator, shares held by AM Capital
Alpha Capital House LtdUnited KingdomTradorax (TDorax)operator, shares held by AM Capital
GammaTech Services OÜEstoniaKayaFXoperator, Director Petar Borislav Zlatkov (Bulgaria)
AlphaTec LtdunknownKayaFXoperator
Global VCunknownKayaFXillegal payment processor
NovaTrades LtdMarshall IslandsNovaTrades, InstaFX24operator
InstaFX24 LtdMarshall IslandsInstaFX24operator
EZCRyptoplace LimitedMarshall IslandsEZCryptoPlace, EZCrypto Placeoperator
NTMT Transformatic Markets OÜEstoniaKontoFX, EZCryptoPlace, EZCrypto Placeoperator, director Petar Borislav Zlatkov (Bulgaria)
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
FTG Solutions LtdBritish Virgin IslandsWDC Marketsoffshore operator

Payment Processors

The payment processors involved at the time were Praxis Cashier, Hermes Solutions Podgorica DOO, UPayCard operated by Moorwand Ltd, or KBH Andelskasse. Moreover, the KayaFX scam used illegal payment processors such as Global VC for bank wires.

We will bring an update on this scam network shortly and then hopefully have an update from the law enforcement authorities. If you have any information on KayaFX et al., we would appreciate it if you could share it with us.

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