Tradorax: The Binary Options Scam Network and Its Alleged Mastermind Avi Itzkovich

This document provides a legal, regulatory, and financial risk assessment of Tradorax, a binary options trading platform that operated from approximately 2013 until its closure in 2017. The information is derived from the FinTelegram tag page on Tradorax, which aggregates investigative reporting on the platform and its alleged operator Avi Itzkovich, as well as supplementary sources including Europol statements, German court proceedings, and corporate registry records. According to these sources, Tradorax was part of a broader network of fraudulent trading platforms that defrauded investors of an estimated 30 million euros. This assessment is organized as a consumer alert for potential victims of binary options and forex scams.

The FinTelegram Investigation

FinTelegram, a financial intelligence and investigative journalism platform, has published extensive coverage of Tradorax and its associated network. The tag page on Tradorax compiles multiple reports documenting the platform’s fraudulent operations, its corporate structure in Bulgaria, and the legal proceedings against its operators. FinTelegram identified Tradorax as part of a binary options scam network that defrauded investors of hundreds of millions between 2013 and 2017 . The investigation traced the platform’s ownership and management to individuals operating from Bulgaria, Israel, and other jurisdictions.

The FinTelegram coverage highlights that Tradorax was not an isolated operation but rather one component of a larger fraudulent enterprise. The platform shared corporate infrastructure, call center operations, and management with other scam platforms including KayaFX, KontoFX, and LibraMarkets. This network structure allowed the operators to rebrand and continue defrauding investors even after individual platforms were shut down or exposed by regulators.

The Alleged Mastermind: Avi Itzkovich

FinTelegram and other investigative sources identify Avi Itzkovich as the alleged mastermind behind Tradorax and the associated fraud network. Itzkovich, described as an Israeli national with alleged dual Romanian citizenship, spent over a decade operating from Bulgaria where he orchestrated a series of fraudulent trading platforms . Investigative journalists report that Itzkovich deliberately maintained a low profile, keeping almost no digital footprint, no LinkedIn presence, and no public photographs. This strategic anonymity was intended to shield his operations from scrutiny.

According to reporting from Orbitalc.com cited by FinTelegram, Itzkovich constructed a system that exploited the trust of investors worldwide, converting that trust into monumental profits for himself and crippling losses for his victims . His name, among victims and international investigators alike, became an enduring synonym for financial deception and investor devastation.

The Corporate Structure: Raks Media and Mercure Group EOOD

The Tradorax operation was managed through Raks Media in Sofia, Bulgaria, a company that on the surface appeared as a legitimate, well-organized business. In reality, investigative reporting describes it as a front for a sophisticated web of deceit. The company was co-founded by Avi Itzkovich and his associate Jack Wygodski, also known as James Henry Wygodzki .

Bulgarian company records indicate that the firm was registered in Sofia in January 2014 under the name Raks Media EOOD, later rebranded as Mercure Group EOOD. The corporate registration listed numerous Israeli managers, creating a complex ownership structure designed to obscure the true beneficiaries. This corporate veil of legitimacy was powerful enough to deceive both victims and initially some local authorities.

The choice of Bulgaria as an operational base was strategic. The country offered regulatory leniency, lower operating costs, and proximity to wealthy European victims. Through his Bulgarian companies, Itzkovich ran call centers employing dozens of operatives recruited with promises of high-tech careers. These call centers, known as boiler rooms, used high-pressure sales tactics to convince victims to invest.

The Fraudulent Business Model

The Tradorax business model followed a pattern common to binary options scams. The platform encouraged savers to make apparently simple bets on whether shares or currencies would rise or fall in value . Victims were assigned individuals who identified themselves as brokers to trade on their behalf. These brokers made a series of investments over the course of several months.

However, investigative reporting reveals that customer funds were never genuinely invested. The money was simply revenue to be siphoned, with platforms allegedly manipulated to ensure client losses . Operators used manipulable software that displayed fabricated investment gains, encouraging victims to deposit more money. When victims attempted to withdraw their funds, they faced endless obstacles including frozen accounts, denied requests, and eventually complete disappearance of customer service.

One victim documented by The Independent lost nearly 60,000 pounds, the majority stemming from his pension fund. After filing a withdrawal request, his account was blocked and his banks, Action Fraud Police, and the Financial Ombudsman Service were all unable to assist him .

The May 2021 Europol Operation

On May 11, 2021, Europol coordinated a massive action day across eight countries including Germany, Bulgaria, Israel, Latvia, North Macedonia, Poland, Spain, and Sweden . German prosecutors in Koblenz led the investigation, having tracked hundreds of victim complaints directly to Itzkovich’s Bulgarian operation. When police stormed the Sofia call centre, they found a luxurious workspace with high-end furniture, a stage set for deception.

Approximately twelve locations were searched across Bulgaria, Israel, Poland, North Macedonia, and Sweden. Authorities seized approximately 2 million euros in cash, electronic devices, real estate, jewelry, and luxury vehicles. Six people were arrested, including Avi Itzkovich himself. The fraud gang members held German, Bulgarian, Israeli-Romanian, Polish, Danish, and Belgian nationalities, a deliberate strategy to complicate jurisdictional oversight.

The operation targeted the fraudulent websites Tradorax, Tradervc, Kayafx, Kontofx, and Libramarkets . According to Europol, the criminal network used search engines and social media advertising to entice thousands of victims, who were then coerced into making investments. German authorities stated that the money was simply stolen and never actually invested.

The Koblenz Criminal Proceedings

Following the Europol operation, the Koblenz Prosecutor’s Office in Germany formally charged Avi Itzkovich and his associate James Henry Wygodzki with leading a criminal organization and systematic fraud . The investigation determined that the scheme had defrauded victims of approximately 30 million euros, equivalent to about 36 million US dollars.

In a development that surprised some observers, both Itzkovich and Wygodzki pleaded guilty to the charges. However, investigative analysts interpret this not as an act of contrition but as a calculated legal maneuver. By pleading guilty, Itzkovich sought to cap his sentence, control asset forfeiture, and prevent deeper investigation into his hidden wealth . Critics argue that such plea deals allow masterminds to retain hidden wealth while offering victims only minimal restitution.

Despite his guilty plea, reports indicate that Itzkovich is not in custody. Intelligence reports suggest he has fled Israeli authorities and is believed to be operating from Serbia . His partner Wygodzki also remains free, reportedly using forged documents to evade capture.

The Network of Associated Platforms

FinTelegram’s investigation reveals that Tradorax was merely one brand within a larger ecosystem of fraudulent platforms. When Tradorax became too toxic after a damning exposé in Britain’s Independent newspaper, Itzkovich simply launched KayaFX, then KontoFX, then LibraMarkets . The underlying fraud machine never stopped, only the names changed.

This pattern of rebranding and relocation is characteristic of persistent fraud operators. The network also included UProFX and InstaFX, each following the same blueprint of false promises, manipulated software, and blocked withdrawals . Investigators note that the same call center staff, management structure, and payment processing systems were used across all platforms.

The Israeli Connection and Regulatory Failure

FinTelegram and other investigative sources highlight the role of Israel in the binary options fraud industry. For years, the industry employed thousands in Israel and stole billions, but prosecutions were virtually nonexistent . When Israel finally banned binary options in 2017, operators like Itzkovich simply moved overseas, to Bulgaria and Serbia, and kept defrauding Europeans.

European prosecutors note a consistent pattern that time after time, fraud proceeds end up in Israeli bank accounts . Despite the international scope of the fraud, Israeli authorities have charged very few of the perpetrators. This regulatory failure has created a permissive environment where fraudsters can operate for years with near impunity.

Consumer Alert for Potential Victims

Based on the FinTelegram investigation and related sources, individuals who invested with Tradorax or any associated platforms should consider the following risk factors. The platform was part of a binary options scam network that defrauded investors of hundreds of millions. Avi Itzkovich, identified as the alleged mastermind, pleaded guilty to criminal charges in Germany for a 30 million euro fraud scheme. The operation used Bulgarian shell companies including Raks Media and Mercure Group EOOD to project false legitimacy. Victims reported frozen accounts, denied withdrawals, and fabricated trading profits. Europol coordinated an eight-country operation leading to arrests and asset seizures. Despite legal proceedings, key perpetrators including Itzkovich and Wygodzki are reportedly not in custody. Associated platforms include KayaFX, KontoFX, LibraMarkets, UProFX, and InstaFX.

Affected individuals should document all communications and transaction records. They should report the matter to their local law enforcement and financial regulators. In the European Union, victims can contact Europol or the relevant national authorities in Germany where the criminal case was prosecuted. Victims should be aware that recovery scams targeting previous fraud victims are common, and they should be cautious of any individual or company offering to recover lost funds for an upfront fee.

Related Businesses and Entities

The corporate network associated with Tradorax includes the following entities based on FinTelegram and investigative reports. The primary fraudulent platforms include Tradorax, KayaFX, KontoFX, LibraMarkets, UProFX, and InstaFX. The Bulgarian operating entities are Raks Media EOOD and Mercure Group EOOD, both registered in Sofia. The alleged mastermind is Avi Itzkovich, an Israeli-Romanian national. His associate is James Henry Wygodzki, also known as Jack Wygodski. Other managers listed in Bulgarian records include Maor Ben-Zvi, Daniel Koen, Jonathan Grinfeld, Or Tal Shlomei, Erez Legerbaum, Tal Kerzfeld, Moran Kerimov, Michael Zalk, Eden Sror, Daniel Natan Huluban Mandl, Avraham Aviv Hileli, and Dror Geht. The payment processor associated with the network is Opal Payments in Singapore, co-run by Guy Yuval. The investigating authorities include the Koblenz Prosecutor’s Office in Germany, Europol, and Eurojust