An Israeli Industry That Became an International Problem
Over the past two decades, Israel has developed a global industry focused on marketing online trading platforms. This involved websites that offered clients worldwide trading in binary options, contracts for difference (CFDs), forex, and cryptocurrencies. What began as small initiatives and free trading workshops in the early 2000s became, by the mid-2010s, a multi-armed, resource-intensive industry, but also one rife with criminal suspicions and fraud.
How It Worked in Practice
Clients from Western countries (Germany, Austria, Britain, Canada, Australia, Scandinavia, and the USA) were exposed through aggressive advertising to websites that promised high returns in digital trading. Behind these websites usually stood Israeli companies or companies with Israeli connections, operating from Israel, Cyprus, Ukraine, Bulgaria, Georgia, and Dubai.
The sales apparatus included "brokers" – marketing personnel and agents who spoke the target language (German, English, Swedish) and persuaded clients to invest more and more money. In many cases, clients believed they were trading on real trading platforms, but in practice, their money was not invested in the market but transferred directly to the company's account.
A Complete Professional System
Beyond website managers and sales personnel, also involved were:
- Lawyers who created legal structures to mask the identity of the owners.
- Payment companies that transferred money between continents.
- Content advisors and developers who built "trading" systems with fake chart displays.
- Financial advisors and digital marketing personnel who worked to create trust.
Many of the employees were salaried workers – some young – who didn't understand the full implications of their actions.
What Happened When It Collapsed?
As the years passed, clients began to understand that their money wasn't coming back. Complaints began piling up in police forces of many countries, especially in Europe. Meanwhile, law enforcement authorities in target countries began to understand that this was a coordinated and global system. Hundreds of investigations were opened – some by federal bodies (like the FBI, SEC, and CFTC in the USA), some by economic bodies (BaFin in Germany, FCA in Britain), and some by local police forces in Europe.
Field Examples
- Y Trading Case – In 2021, several suspects who operated a fake CFD platform targeting German clients were arrested in Israel and Ukraine. An investigation by Berlin police, in cooperation with Lahav 433 unit, led to search and arrest warrants, followed by extradition requests.
- BinaryBook and Banc de Binary Case – Both companies operated from Israel, Cyprus, and Hong Kong. The owner of one of them was extradited to the USA in 2020 for defrauding hundreds of millions of dollars.
Extradition Proceedings
As part of the international fight, many countries – including Israel – receive extradition requests. That is: a person can be arrested in Israel or abroad at the request of a foreign country, sometimes based on an Interpol warrant, and face extradition proceedings to a court in the destination country.
These proceedings are complex and sometimes take place while under prolonged detention in Israel or in foreign detention centers. This is a sensitive legal field that requires deep understanding of local law, international treaties, and the legal system of the destination country.
How Can I Help?
I represent or accompany suspects and defendants in cases of international cyber crimes, economic fraud, online trading, securities offenses, and extradition to foreign countries. With over a decade of experience in criminal law, I accompany clients from the initial stages – investigation, seizure orders, negotiations with foreign countries – to hearings in courts.
Contact for Legal Consultation
If you are concerned that you might be exposed to international investigation, have received contact from foreign authorities, are in extradition proceedings in Israel or abroad, or are detained in Israel or abroad – seek immediate legal consultation. From my experience, actions taken early can tip the scales: avoid extradition, reduce or clear the charges, and/or reach an agreement with the prosecution in the foreign country.