EFRI Update – From Tradorax via KayaFX and KontoFX to Libra Markets

Spread financial intelligence

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 (Itzkovic) and James Henry Vigottski (Wygodsky). The members of the company’s management team as listed in the Bulgarian companies register is a. We will deal in detail with the persons involved in this scheme in a separate report.

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:

DateRegulatorBrandCompanies or Address
Feb 1, 2019FMA AustriaKontoFXNMTM Transformatic Markets OÜ
April 3, 2019FMA AustriaEZCryptoPlace
Feb 1, 2019FMA AustriaKontoFXNMTM Transformatic Markets OÜ
May 10, 2019
Sep 27, 2018
FCA UKKontoFX, EZCrypto PlaceNMTM Transformatic Markets OÜ
May 10, 2019MFSA MaltaKontoFX, EZCrypto PlaceNorthside Business Centres, 2nd and 4th floor, BC91 Office building, Budapest 1139, Hungary
March 26, 2019
March 29, 2018
FCA UKKayaFXGammaTech Services OÜ
March 18, 2019CNMV Spain UKKayaFXAlphaTec Ltd
April 8, 2019CNMV Spain UKUproFX

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

CompanyJurisdictionBrand or Trading StyleRemarks
Alagos LimitedGibraltarTradorax (TDorax)first offshore
AM Capital LtdMarshall IslandsTradorax (TDorax)offshore, 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 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 formerly known as Rax Media EOOD
ABC Global EOODBulgariaTradorax, KayaFX, KontoFX, Libra Marketsboiler 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.

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