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.
|Company||Jurisdiction||Brand or Trading Style||Remarks|
|Soleil Rouge Inc||Commonwealth of Dominica||Grandefex||offshore operator|
|Alagos Limited||Gibraltar||Tradorax (TDorax)||offshore operator|
|AM Capital Ltd||Marshall Islands||Tradorax (TDorax)||offshore, shareholder of BetaTech EOOD and Alpha Capital House Ltd|
|BetaTech EOOD||Bulgaria||Tradorax (TDorax)||operator, shares held by AM Capital|
|Alpha Capital House Ltd||United Kingdom||Tradorax (TDorax)||operator, shares held by AM Capital|
|GammaTech Services OÜ||Estonia||KayaFX||operator, Director Petar Borislav Zlatkov (Bulgaria)|
|Global VC||unknown||KayaFX||illegal payment processor|
|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 previously known as Rax Media EOOD|
|ABC Global EOOD||Bulgaria||Tradorax, KayaFX, KontoFX, Libra Markets||boiler room|
|FTG Solutions Ltd||British Virgin Islands||WDC Markets||offshore operator|
The payment processors involved at the time were Praxis Cashier, Hermes Solutions Podgorica DOO, UPayCard, 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.