FinTelegram and EFRI launched the EFRI campaign in April 2019 to recover money for defrauded investors of the broker scam KayaFX. Since then we have received a lot of information from victims, which slowly but surely gives the big picture of this Bulgarian-Israeli broker scam scheme. In fact, the people behind this scam have been doing their work since 2014. In the beginning, there was Tradorax with binary options and its operating company Alagos Limited (Gibraltar). Since then the companies and domains (Trading Styles) have changed but the fraud is still the same.
Changing brands and Israeli boiler rooms
It is important to understand that the trading styles (brands and domains), operating companies and frontline personnel change frequently while the boiler rooms behind remain the same. Customer data is exchanged or sold between the different trading styles. According to the information available to us, the boiler rooms – these call themselves marketing companies or BPO providers – behind Tradorax and the successor brands were and are the two Bulgarian companies Mercure Group EOOD (formerly Rax Media EOOD) and ABC Global EOOD. Both operate huge boiler rooms in Sofia with dozens of employees.
Like E&G Bulgaria of the Israeli Gal Barak, the operators behind the boiler rooms are Israelis. Mercure Group EOOD with the company no 202913389 was established in Sofia, Bulgaria, as RAX Media Ltd (РАКС МЕДИА) in January 2014 by Avi Itzkovich (
Financial Regulator warnings
The financial market supervisory authorities have issued numerous warnings against the illegal and fraudulent trading styles and their operators. Below is a list of some warnings:
| Date | Regulator | Brand | Companies or Address |
| Feb 1, 2019 | FMA Austria | KontoFX | NMTM Transformatic Markets OÜ |
| April 3, 2019 | FMA Austria | EZCryptoPlace | |
| Feb 1, 2019 | FMA Austria | KontoFX | NMTM Transformatic Markets OÜ |
| May 10, 2019 Sep 27, 2018 | FCA UK | KontoFX, EZCrypto Place | NMTM Transformatic Markets OÜ |
| May 10, 2019 | MFSA Malta | KontoFX, EZCrypto Place | Northside Business Centres, 2nd and 4th floor, BC91 Office building, Budapest 1139, Hungary |
| March 26, 2019 March 29, 2018 | FCA UK | KayaFX | GammaTech Services OÜ |
| March 18, 2019 | CNMV Spain UK | KayaFX | AlphaTec Ltd |
| April 8, 2019 | CNMV Spain UK | UproFX |
The publication dates of the investor warnings above show that this broker scam scheme is still active today and that regulators are still busy dealing with the many complaints. It should be noted that in the period before 2016 the regulators did not fully recognize the potential of binary options scams.
Therefore, the number of public warnings before 2016 is rather low. The discovery of fraud often takes months for investors and the regulators are only put on track by the complaints of cheated investors. In this respect, there is sometimes a massive time lag between the time of committing the fraud and a public investor warning by regulators.
Involved companies and brands
| Company | Jurisdiction | Brand or Trading Style | Remarks |
| Alagos Limited | Gibraltar | Tradorax (TDorax) | first offshore |
| AM Capital Ltd | Marshall Islands | Tradorax (TDorax) | offshore, 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) |
| AlphaTec Ltd | unknown | KayaFX | frontend |
| 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 formerly known as Rax Media EOOD |
| ABC Global EOOD | Bulgaria | Tradorax, KayaFX, KontoFX, Libra Markets | boiler room |
Report your claims with EFRI
If you are a victim of these Broker Scams and its different trading styles, please register with our European Fund Recovery Initiative (EFRI). We are also grateful for all information regarding these brokers, their perpetrators and beneficial owners, payment services partners and co-conspirators. Together we can work through this huge scam, hold those responsible accountable and reclaim your money.
