Another complication for an Israeli-Bulgarian, Ilan Tzorya?
The businessman Ilan Tzorya, who is known to those involved in the forex industry and in Bitcoin trade , established his investment companies for years in Sofia, Bulgaria. Companies such as Krypton Capital Group, owned by Tzorya, continue to set up subsidiary companies for consulting and trading in Bitcoin, as well as casino and gambling sites such as the Gambling Investment Fund (GIF) presented by Cryptovest today (another company under Tzorya‘s Krypton Capital Group).
GIFCOIN was founded by VitalBet, a gambling company that claims to have more than 20,000 active customers, bringing in $ 7 million annually. VitalBet itself is operated by Galaxy 88 Ltd, a British company with offices in Bulgaria.
All of these companies have found refuge in a place like Bulgaria, where most of them compound the business pyramid built by Tzorya.
Ilan Tzorya was an active member of VELTYCO, a British sports betting company which offered a vague bitcoin trading platform (8Crypt) . Clients are advised to invest in currencies such as Crypto and / or Forex.
The gambling industry is expanding into the gray area of currency trading, more commonly known as forex trading, a field that has recently been tested and entered into strict regulation around the world.
Tzorya‘s gambling sites have also recently begun to market the profitability of investing in the field of Forex. At Tzorya‘s sites, you will guidance on how to start your investment in Bitcoin as well as in other currencies.
Only recently there has been arrests for the exact same method that Tzorya proposes.
An industry that has hundreds of millions of dollars and employs thousands of people cynically deceiving potential and innocent investors from around the world through a wide variety of corrupt practices.
The industry is seriously harming its victims, and threatens to damage Israel’s image as well.
The forex industry has recently acquired a reputation for exploitation of the weak. In the eyes of many, such investments are compared to a pyramid in which the direction is one-way without any profit. According to testimonies from people who were burned in the past, this is an industry that appeals mainly to weak populations. In Israel, the issue has only recently been regulated, but not one that changes the laws from one end to the other, as in other countries where trade companies are obligated to examine local securities authorities.
For the sake of comparison, the issue in the US has been regulated and only 10 companies operate in the US market. In Europe, the issue has not yet been finalized by law, and today the number of companies operating in the field is about 300. The situation in Israel is no different and in a relatively small market there are currently about 30 companies, this number will be reduced for regulation is making its mark.
Quite a few testimonies compare the trade in binary options to a casino where only the “house” earns. Some of the more well-known large companies were founded by Israelis or those who conduct significant operations or trade in Israel but are regulated in Cyprus. This gives them a license to sell financial products in certain EU countries even if they are not regulated in those countries.
Recently, various points of so called trade have begun to appear in various locations in Europe, when in fact it is a widespread fraud.
The Cyber Police exposed the activities of the fraudulent currency exchange scheme.
In Kiev, the cyber unit of the national police uncovered a criminal group that organized a fraudulent currency exchange scheme.
The criminal group has been operating in Ukraine since 2013. Its participants, led by a 28-year-old foreigner, organized a criminal scheme that operated under the guise of participating in online trading in currency pairs (binary options).
To do this, the group specifically created the web resources “binex.ru”, “binex.ua”, and “binex.kz”. Their goal was to attract potential customers and create an impression of participation in real online financial trading. The client was offered to participate in an auction by opening a special demo account, through which a guise of successful trades was created. Following that, the potential victim was offered to open a real account.
See: A group of scammers detained large sums of money from residents of the occupied Crimea, the National Police. VIDEO + PHOTO-report
“Through the use of a number of methods of psychological influence and dedicated software, the scammers guided their customers to deposit the maximum amount of payment to their accounts, while the greater the amount deposited, the greater the chances of successful bidding.” At the same time, the attackers purposefully conducted a number of operations that led to the loss of money by the participant in these “auctions.” In case the victim attempted to withdraw his money ahead of time, the scammers, under various pretexts, refused and offered to continue with the bidding, “- sad Sergey Demedyuk, the head of the Department of Postal and Telecommunications .
The police officers in Kiev conducted an authorized search in the offices of scammers, during which they found a client base of approximately 15,000 people (both Ukrainian citizens as well as foreigners), a CRM system (which carries out administration, analytics, collection of statistical data and manipulation of the accounts of the victims), audio recordings of conversations with customers (approximately 60,000 hours), a list of fraudsters’ bank accounts and draft notes.
Criminal proceedings started under part 4 of Art. 190 (fraud) of the Criminal Code of Ukraine. The law enforcement agencies of countries, where fraudsters’ offices were also located, will be informed through the Interpol about the discovery of this criminal group.