After the shutdown of the fraudulent binary options platform SafeMarkets, it is time to conduct a further forensic analysis of the malicious activities of the global network behind it. SafeMarkets is part of a dark and hence mostly hidden network which has received many warnings from financial market supervisory authorities across different jurisdictions. In particular, the following central organizations can be identified.
- EandG Finances Ltd (Bulgaria)
- Novox Capital Ltd (Cyprus)
The Boiler Rooms of “EandG Finances Ltd”
According to the information available to us, the beneficial owners of SafeMarkets are the well-known binary options artists Gal BARAK and Marina ANDREEVA. These guys are hiding behind offshore companies on the Marshall Islands, Panama and Samoa. We received details on this companies already but are still working on the verfication.
The platform was operated by EandG Finances Ltd (EandG) and Novox Capital Ltd, both notorious websites service providers or operators behind many trading platforms. EandG Finances’ call centers (boiler rooms) serve many binary options and FOREX platforms.
The “EandG Finances Ltd” with its official headquarter in Sofia, Bulgaria is run by an international team of managers and scam artists. These include guys from Israel, USA, Albania, and Bulgaria. According to her LinkedIn profile, Marina ANDREEVA is also a manager with EandG finances. We reached out to her and her colleagues for comments but have not heard back anything yet.
Besides many other FOREX & Binary Options brands, the company also provide its services to the platforms OptionStars and OptionStarsGlobal. If you are interested to learn more about of the people around Marina Andreeva, please refer to www.optionstarsrevealed.com.
The Cypriot Novox Capital Ltd.
SafeMarkets, OptionStars and many other platforms are also associated with Novox Capital Ltd (Cyprus), according to various financial market supervisory authorities Novox Capital serves as money transmitter and handles the custody accounts. In addition, Novox Capital also operates several large platforms such as OptionStars on its own responsibility (and/or trustee for clients). The domain www.optionstars.com, for example, was registered by Novox Capital in March 2014. Until recently, one could find out on SafeMarkets.com that the processing of customer payments as well as the custody account were handled by Novox Capital.
The financial service provider regulated by CySEC plays a central role in the network of binary options. Also, the platforms ZoomTrader and ZoomTraderGlobal as well as OptionBit or Option888, which were also targeted by financial supervisory authorities in Europe, North America, and Asia, were at least temporarily related to or established by Novox Capital Ltd.
Although the financial service provider in connection with binary options was repeatedly fined with high penalties by the CySEC, the license has not yet been withdrawn which is quite alarming. CySEC is known for its relaxed standards and behavior when it comes to compliance and investors protection, unfortunately.
The large-scale binary option fraud
In recent years, Novox Capital has operated a number of by now banned or closed binary options platforms, contributing to the potential loss of hundreds of millions of client assets. In 2016, the French Financial Market Authority (AMF) estimated that even with regulated financial services providers such as Novox Capital, around 90% of customers lose their money in FOREX and Binary Options transactions. In the case of unregulated operators, the AMF has even assumed the total loss of customer funds, as can be seen from a report by Simona WEINGLASS in The Times of Israel.
We learned from insiders that considerable funds from the network have been frozen at banks. Among these frozen funds there are also supposed to be considerable funds at Deutsche Bank. According to our information, a huge investigation is already being conducted by authorities. More information on
- the freezing of funds in the network and
- the role of Dream Pay and Vladislav SMIRNOV and
- the VELTYCO position will be available shortly.
[to be continued]
Also published on Medium.