Titan Trade was founded in 2010 and provided clients with binary options and other high-risk trading tools. Since 2014, this company has received negative reviews from customers, and there have been numerous instances of the company’s dishonest business practices confirmed, including video evidence of the company breaking regulations. After conducting an independent verification of Titan Trade broker, Traders Union experts concluded that there are unmistakable signs of fraud in this company’s operations. Titan Trade is a scam. This company is no longer making payments or keeping its word to partners and customers. Working with Titan Trade is not suggested.

The Lawsuit Against Stefan Trasca’s Scam

The Times of Israel’s Simona Weinglass reported in January 2018 on a lawsuit brought against TitanTrade, a binary options fraud. A claimed $95,000 loss with TitanTrade led to a Polish woman filing the lawsuit in May 2017. In the case, Yossi Haezrachy and Nir Friedman, two attorneys, claim that Gtech Media Development Ltd. (formerly known as MIG G.A. Marketing Finance Ltd. or MigFin) ran TitanTrade. Guy Galboiz, an Israeli, is both the registered owner and director of Gtech.

The Scam of Stefan Trasca

Galboiz’s attorneys refuted TitanTrade’s connection between Gtech and their client in their writ of defence. Before it could go to the evidentiary phase, the action was withdrawn. Throughout the court case, the plaintiff asked to have her lawsuit dismissed and declared she had no grounds to sue Gtech. According to Simona Weinglass’ article, the plaintiff took this action because, at the outset of the legal procedures, TitanTrade returned all of the plaintiff’s money, despite the fact that TitanTrade was not a defendant.

More Details About Stefan Trasca’s Scam

Actually, Guy Galboiz, through his Gtech (previously MigFin), is the beneficial owner and/or controlling person. FinTelegram has obtained proof that unequivocally establishes that Gtech arranged the TitanTrade scheme through Ultra Solutions MG Limited. The directors and shareholders of Ultra Solutions include Genevieve Magnan, a citizen of the Seychelles who is well-known for serving as an ideal front for dishonest broker scams.

The ultimate beneficial proprietors of Ultra Solutions were Guy Galboiz and his Romanian partner Stefan Trasca through his Gtech (then called MigFin), as one can see, for instance, in this merchant application form submitted with a PSP:

How Stefan Trasca and Guy Galboiz Made Millions Through Their Scam

In actuality, TitanTrade and other unlicensed binary options broker websites were run by MigFin (Gtech). Employees of MigFin, like For Herches, are included as contact persons in the merchant applications (see screenshot above). It’s interesting to note that the TitanTrade operators anticipated a monthly payment volume of $3.5 million when perusing the merchant application form.

But Guy Galboiz and his businesses also utilise MoneyNetInt, another Israeli payment service provider that is registered with the Financial Conduct Authority (FCA) in the UK, in addition to PayObin, which is run by Tamir Zoltovksy and Eyal Nachum. Additionally, the Lithuanian PSP Moneta International is owned by Nachum and Zoltovsky. We will provide more information on these Israeli PSPs in a later article in the course of our PSP research activities.

MigFin not only owned Ultra Solutions but also Primero Capital Solutions Limited, which will be the subject of a future FinTelegram report, as one can read from MigFin-Emails (see highlighted Email below).

These facts unequivocally demonstrate that Guy Galboiz and his business partner Stefan Trasca were TitanTrade’s beneficial owners. Many of the previous customers of TitanTrade and other binary options platforms will find this interesting.

What is a Binary Option?

A binary option is a kind of options contract where the payout is contingent only on the answer to a yes/no question. These questions usually concern whether the price of a given asset will increase above or fall below a given threshold.  Because binary options execute automatically, the holder of the option has no additional decision to make regarding its execution after it has been bought.  A binary option does not grant the holder the ability to purchase or sell the designated asset, in contrast to other forms of options.  The option holder receives either nothing at all or a certain sum of cash when the binary option expires.

What is a Ponzi Scheme?

A Ponzi scheme is a fraudulent investment scheme that entices investors with large returns at low risk. A Ponzi scheme is a fraudulent investment scheme in which funds obtained from later participants are used to generate returns for initial investors. This and a pyramid scheme are comparable in that they both rely on using the money of new investors to settle the debts of previous backers.

When the influx of new investors stops and there isn’t enough money for everyone, Ponzi and pyramid scams finally hit rock bottom. That’s when the plans go apart.

The word “Ponzi scheme” comes from the 1920s businessman Charles Ponzi, who was able to convince tens of thousands of people to invest their money with him. Through the purchase and selling of discounted postal reply coupons, Ponzi’s scam claimed to generate a set amount of profit after a specified amount of time. Rather, he was repaying previous debts with newly invested funds.

Bottom Line

Clients anticipate a certain amount of fiduciary duty when they give money to investment firms or financial advisors. Regretfully, Ponzi schemes have the potential to fraudulently mismanage those monies. Ponzi schemes aren’t real investment plans since they use the money of one investor to pay off another. Billions of dollars have been lost as a result of these fraudulent investment scams.