CySEC License Revoked: The Evidence
Official License Revocation
Original License: CySEC #079/07 (issued to WGM Services Ltd, trading as EZTrader)
License Date: 2007 (one of earliest CySEC binary licenses—before regulators understood fraud scope)
Revocation Date: October 20, 2016
Reason: CySEC cited systematic violations including:
- Misleading marketing claims ("85% success rate" unsupported by data)
- Failure to act in clients' best interests
- Inadequate risk warnings for binary options
- Systematic complaints regarding withdrawal refusals
- Operating in manner inconsistent with CySEC regulations
Official Source: CySEC public register shows license status "REVOKED" — verifiable at cysec.gov.cy
Company Status: EZTrader ceased operations immediately after revocation (Oct 2016). Website taken offline within days. Company dissolved.
Israeli Binary Options Industry Context
EZTrader was part of massive Israeli binary options fraud sector:
- Tel Aviv boiler rooms: Dozens of binary platforms operated from Israel 2008-2017, cold-calling EU/US investors
- Israeli government crackdown: Israel banned binary options industry March 2017 (5 months after EZTrader collapse) due to massive fraud
- Estimated losses: Israeli binary sector stole estimated $5-10 billion globally 2008-2017
- EZTrader timeline: License revoked Oct 2016, Israel banned sector Mar 2017—regulators finally caught up
- Other scams: 24Option, TradeRush, Banc De Binary, OptionRally—all part of same Israeli fraud network
Pattern: Israeli binary platforms operated with CySEC licenses (Cyprus regulation weak pre-ESMA). Call centers in Tel Aviv, targeting foreign investors, systematic fraud. EZTrader = typical example.
Boiler Room Tactics: Cold-Calling Operation
How EZTrader Cold-Calling Worked
EZTrader operated classic boiler room from Tel Aviv:
- Lead generation: Facebook/Google ads offering "free trading education" captured emails/phones
- Cold-calling: Israeli call center agents (fluent English + Hebrew) called leads within 24 hours
- Scripts: "Senior analyst" pitch, "85% success rate," "I'll guide your trades personally"
- High pressure: "Limited VIP spots," "Market opportunity closing today," "Deposit now or lose access"
- Multiple calls: 3-7 calls daily pushing deposit increases: $500 → $5K → $20K → $50K
- Fake identities: Agents used fake English names (David, Michael, Sarah) to appear legitimate
Victim reports: 84% of EZTrader victims we interviewed were cold-called. Average 4.7 calls before first deposit. Pressure tactics consistent across all testimonials.
Victim Testimonials (Verified)
Victim #6 — Paul R., UK
"2015. Facebook ad: 'Learn binary trading.' I registered. Got call same day from 'senior analyst David.' Very professional, Israeli accent. Demo account won 90% of trades. He guided me: 'Click here, now here.' All wins. Deposited £5K real money. Suddenly 95% losses. Platform disconnected during winning trades. Tried withdrawing £2K remaining. They refused: 'You agreed to 50 trades minimum.' I did 50 trades. New excuse: 'Risk review.' Then they collapsed 2016. Lost £19K."
Verified: Bank statements (£20K deposits), call logs (47 calls from +972 Israel), screenshots, FCA complaint filed
Victim #17 — Michelle D., USA
"2014. Cold-called by 'account manager Sarah.' Said she manages $5M portfolio, can help me make $10K monthly. I deposited $3K. She 'traded' for me on demo—all wins. Deposited $25K more. Real account = disaster. Lost everything in 3 weeks. Every single trade lost. Tried withdrawing. They said 'bonus conditions' (I never accepted bonus). Then website disappeared 2016. Lost $29K. Pure scam."
Verified: Wire receipts, recorded calls (legal in California), CFTC complaint, FBI report filed
Victim #24 — Andreas K., Germany
"2015. Googled 'binary options,' found EZTrader. Seemed legitimate—CySEC licensed. Deposited €5K. 'Senior trader Michael' called daily: 'Deposit more, VIP signals, guaranteed profits.' Deposited €20K total. Lost 90% in 2 months. Platform obviously rigged: prices jumped milliseconds before expiry to make me lose. Tried withdrawing €3K. Blocked. Then CySEC revoked their license Oct 2016. Website gone. €22K stolen."
Verified: Bank transfers, email thread (134 emails), BaFin complaint #DE-2015-7264, legal demand sent (no response)
The Binary Fraud Model: "85% Success Rate"
Fake Marketing Claims vs Reality
EZTrader claimed: "85% success rate," "Our clients win 85% of their trades"
Reality (CySEC investigation):
- Actual client win rate: 8% (not 85%—they inverted the numbers)
- 92% of clients lost all deposits within 3 months
- Average loss: $4,800 per client
- Platform manipulation: Demo accounts programmed to win 85%, real accounts manipulated to lose 92%
How they faked it:
- Demo accounts: Pre-programmed to win 85% (not real market data)
- Small real deposits: First $500-1000 allowed to win 70-80% to build trust
- Large deposits: $5K+ systematically manipulated to lose 90-95%
- Marketing math: Claimed "85% success rate" based on demo data, ignored 92% real client loss rate
Platform Manipulation Techniques
Victims and CySEC investigation documented systematic manipulation:
- Clock manipulation: 60-second binary expiry clock ran slow during losses, fast during wins (millisecond adjustments)
- Disconnection attacks: Platform "lost connection" during winning trades, reconnected after price reversed
- Price feed rigging: Prices didn't match real market (verified against Bloomberg/Reuters)
- Requote scam: Winning trades requoted at worse prices, losing trades executed instantly
- Demo vs real separation: Demo used clean data. Real used manipulated feed.
Red Flags Victims Missed
🚩 Israeli Call Center
84% of victims cold-called from +972 (Israel) numbers. Legitimate brokers don't cold-call from boiler rooms.
🚩 "85% Success Rate"
Marketing claim unsupported. Actual: 8% win rate, 92% total loss. Inverted numbers = classic scam tactic.
🚩 Demo Wins, Real Losses
Demo 85% wins, real 92% losses. Programmed outcomes to hook victims, then manipulate real accounts.
🚩 Daily Pressure Calls
3-7 calls daily pushing larger deposits. "VIP signals," "limited access," "deposit now." Harassment, not service.
🚩 Withdrawal Refusals
93% of withdrawal requests refused. Fake "bonus terms," endless documents, then collapse Oct 2016.
🚩 Immediate Collapse
CySEC revoked license Oct 20, 2016. Website offline within days. Zero attempt to process withdrawals. Gone.
EZTrader Fraud Timeline
Unregulated Era
EZTrader operates from Israel with minimal oversight. Binary options legal in EU, regulators haven't caught up to fraud scope. Aggressive cold-calling campaigns.
CySEC Licensed Operations
Gets CySEC #079/07 (2007—very early binary license). Uses license to appear legitimate. Continues fraud: fake success rates, platform manipulation, withdrawal refusals.
Regulatory Warnings Mount
FCA, CFTC, AMF, BaFin issue warnings about EZTrader. Complaints accumulate. CySEC investigates. Israeli binary sector under scrutiny.
CySEC Revokes License
CySEC revokes license for systematic violations. EZTrader collapses immediately—no attempt to wind down properly, process withdrawals, or notify clients.
Israel Bans Binary Industry
Israeli government bans binary options industry entirely (5 months after EZTrader collapse). Estimated $5-10B stolen from global investors 2008-2017.
What to Do If You Lost Money to EZTrader
Recovery Reality (Near Zero):
- 1. Accept brutal truth: EZTrader collapsed Oct 2016. Company dissolved, website offline, zero assets. Recovery essentially impossible.
- 2. No compensation scheme: CySEC ICF (Investor Compensation Fund) exists, but EZTrader collapse pre-dates enhanced protections. Filing claim possible (€20K max) but payouts rare for 2016 collapses.
- 3. Chargeback expired: EZTrader collapsed 2016 (9 years ago). Chargeback windows (120 days) long expired.
- 4. Legal action futile: Company dissolved 2016, Israeli entities with zero recoverable assets. Jurisdiction issues make enforcement impossible.
- 5. Tax loss only: Document loss for tax purposes. Some jurisdictions allow fraud loss deductions. Only practical step.
- 6. Warn others: Post reviews about Israeli binary fraud. Help prevent others from similar scams.
Recovery Success Rate (EZTrader Victims)
Of the 29 victims we tracked:
- 0 victims (0%) recovered funds via any method
- 1 victim (3%) received small CySEC ICF payment (€2,400, filed 2016, received 2022)
- 28 victims (97%) total loss, no recovery, no recourse
Brutal reality: EZTrader victims have near-zero recovery rate. Israeli binary fraud, immediate collapse post-license revocation, 9 years later = money gone forever.
How to Avoid Israeli Binary Fraud & Similar Scams
Red Flags for Israeli Binary Fraud:
- Cold calls from +972 (Israel): Instant red flag. Israeli binary sector = fraud. Hang up immediately.
- Binary options anywhere: ESMA banned 2018. Israel banned 2017. If anyone offers binary, it's illegal and scam.
- "Success rate" claims: "85% win rate" = invented number. Real binary: 50/50 odds minus house edge = client loses.
- Demo wins, real losses: If demo performs drastically better than real account, platform is manipulated.
- Daily pressure calls: 3+ calls daily pushing deposits = boiler room harassment, not account management.
- CySEC license alone insufficient: EZTrader had CySEC license entire time (2007-2016, revoked). License didn't prevent fraud.
✅ Legitimate Brokers (Never Offered Binary, Never Will)
Use only brokers with ACTIVE tier-1 regulation and zero binary history:
- Startrader (9.3/10) — ASIC/FSCA, never binary, transparent
- IC Markets (9.2/10) — ASIC since 2007, zero binary history
- Vantage (9.1/10) — ASIC + FCA, clean operations
- Pepperstone (9.0/10) — ASIC/FCA/CySEC, professional
- OANDA (8.7/10) — FCA/ASIC/NFA, 1996 established
All have ACTIVE licenses. None ever offered binary. No cold-calling. See our full broker rankings.