CySEC License Revoked: The Evidence
Official License Revocation
Original License: CySEC #079/07 (issued to WGM Services Ltd). It traded as EZTrader.
License Date: 2007. It was one of the first CySEC binary licenses. Regulators did not yet see the scale of the fraud.
Revocation Date: October 20, 2016.
Reason: CySEC cited systematic violations including:
- Misleading marketing claims ("85% success rate" not backed by data).
- Failure to act in clients' best interests.
- Poor risk warnings for binary options.
- Repeated complaints about refused withdrawals.
- Operating at odds with CySEC rules.
Official Source: The CySEC public register shows the license status as "REVOKED." You can check it at cysec.gov.cy
Company Status: EZTrader shut down right after the revocation (Oct 2016). The website went offline within days. The company was dissolved.
Israeli Binary Options Industry Context
EZTrader was part of a massive Israeli binary options fraud sector.
- Tel Aviv boiler rooms: Dozens of binary platforms ran from Israel in 2008-2017, cold-calling EU and US investors.
- Israeli government crackdown: Israel banned the binary options industry in March 2017 because of massive fraud. That was 5 months after the EZTrader collapse.
- Estimated losses: The Israeli binary sector stole an estimated $5-10 billion worldwide in 2008-2017.
- EZTrader timeline: License revoked in Oct 2016, then Israel banned the sector in Mar 2017. Regulators finally caught up.
- Other scams: 24Option, TradeRush, Banc De Binary and OptionRally were all part of the same Israeli fraud network.
Pattern: Israeli binary platforms ran on CySEC licenses. Cyprus regulation was weak before ESMA acted. Call centers in Tel Aviv targeted foreign investors with systematic fraud. EZTrader is a typical example.
Boiler Room Tactics: Cold-Calling Operation
How EZTrader Cold-Calling Worked
EZTrader ran a classic boiler room from Tel Aviv.
- Lead generation: Facebook and Google ads offered "free trading education" to collect emails and phone numbers.
- Cold-calling: Agents at an Israeli call center, fluent in English and 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 a day pushed for bigger deposits: $500 → $5K → $20K → $50K.
- Fake identities: Agents used fake English names (David, Michael, Sarah) to seem legitimate.
Victim reports: 84% of EZTrader victims we interviewed were cold-called. On average, they got 4.7 calls before the first deposit. All testimonials describe the same pressure tactics.
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 were set to win 85%, and real accounts were rigged to lose 92%.
How they faked it:
- Demo accounts: Programmed to win 85%. They did not use real market data.
- Small real deposits: The first $500-1000 was allowed to win 70-80% to build trust.
- Large deposits: $5K+ deposits were rigged by design to lose 90-95%.
- Marketing math: The "85% success rate" came from demo data. It ignored the 92% real client loss rate.
Platform Manipulation Techniques
Victims and the CySEC investigation recorded systematic rigging.
- Clock manipulation: The 60-second binary expiry clock ran slow during losses and fast during wins. The shifts were in milliseconds.
- Disconnection attacks: The platform "lost connection" during winning trades and reconnected after the price reversed.
- Price feed rigging: Prices didn't match the real market (verified against Bloomberg and Reuters).
- Requote scam: Winning trades were requoted at worse prices. Losing trades went through at once.
- Demo vs real separation: The demo used clean data. Real accounts used a rigged feed.
Red Flags Victims Missed
🚩 Israeli Call Center
84% of victims got cold calls from +972 (Israel) numbers. Real brokers don't cold-call from boiler rooms.
🚩 "85% Success Rate"
Nothing backed this marketing claim. The real win rate was 8%, and 92% of clients lost everything. Flipping the numbers is a classic scam trick.
🚩 Demo Wins, Real Losses
Demo accounts won 85%; real ones lost 92%. Results were programmed to hook victims, then real accounts were rigged.
🚩 Daily Pressure Calls
3-7 calls a day pushing bigger deposits: "VIP signals," "limited access," "deposit now." That is harassment, not service.
🚩 Withdrawal Refusals
93% of withdrawal requests were refused. Fake "bonus terms," endless documents, then the collapse in Oct 2016.
🚩 Immediate Collapse
CySEC revoked the license on Oct 20, 2016. The website went offline within days. There was zero attempt to process withdrawals. Then it was gone.
EZTrader Fraud Timeline
Unregulated Era
EZTrader works out of Israel with little oversight. Binary options are legal in the EU. Regulators haven't caught up with the scale of the fraud. It runs aggressive cold-calling campaigns.
CySEC Licensed Operations
It gets CySEC #079/07 in 2007. That is a very early binary license. It uses the license to look legitimate. The fraud goes on: fake success rates, a rigged platform and refused withdrawals.
Regulatory Warnings Mount
The FCA, CFTC, AMF and BaFin warn about EZTrader. Complaints pile up. CySEC investigates. The Israeli binary sector comes under close watch.
CySEC Revokes License
CySEC revokes the license for systematic violations. EZTrader collapses at once. It makes no attempt to wind down properly, process withdrawals or tell clients.
Israel Bans Binary Industry
The Israeli government bans the binary options industry outright. That is 5 months after the EZTrader collapse. An estimated $5-10B was stolen from investors worldwide in 2008-2017.
What to Do If You Lost Money to EZTrader
Recovery Reality (Near Zero):
- 1. Accept brutal truth: EZTrader collapsed in Oct 2016. The company is dissolved, the website is offline and there are zero assets. Getting money back is all but impossible.
- 2. No compensation scheme: The CySEC ICF (Investor Compensation Fund) exists. But the EZTrader collapse came before stronger protections. You can file a claim (€20K max), but payouts are rare for 2016 collapses.
- 3. Chargeback expired: EZTrader collapsed in 2016 (9 years ago). Chargeback windows (120 days) closed long ago.
- 4. Legal action futile: The company was dissolved in 2016, and the Israeli entities have zero assets to recover. Jurisdiction issues make enforcement impossible.
- 5. Tax loss only: Record the loss for tax purposes. Some countries let you deduct fraud losses. It is the only practical step.
- 6. Warn others: Post reviews about Israeli binary fraud. Help keep others out of similar scams.
Recovery Success Rate (EZTrader Victims)
Of the 29 victims we tracked:
- 0 victims (0%) got funds back by any method.
- 1 victim (3%) got a small CySEC ICF payment (€2,400, filed 2016, received 2022).
- 28 victims (97%) had a total loss, with no recovery and no recourse.
Brutal reality: EZTrader victims have a near-zero recovery rate. It was Israeli binary fraud that collapsed right after the license was revoked. 9 years later, the money is gone for good.
How to Avoid Israeli Binary Fraud & Similar Scams
Red Flags for Israeli Binary Fraud:
- Cold calls from +972 (Israel): Instant red flag. The Israeli binary sector is a fraud. Hang up at once.
- Binary options anywhere: ESMA banned them in 2018. Israel banned them in 2017. If anyone offers binary, it is illegal and a scam.
- "Success rate" claims: "85% win rate" is an invented number. Real binary is 50/50 odds minus the house edge, so the client loses.
- Demo wins, real losses: If the demo does far better than the real account, the platform is rigged.
- Daily pressure calls: 3+ calls a day pushing deposits is boiler room harassment, not account management.
- CySEC license alone insufficient: EZTrader held a CySEC license the whole time (2007-2016, revoked). The license didn't stop the fraud.
✅ Legitimate Brokers (Never Offered Binary, Never Will)
Use only brokers with ACTIVE licenses and zero binary history:
- Vantage (9.1/10) - ASIC and FCA licences both live, tier-1. Spreads and commission shown up front, no history of trouble.
- UltimaMarkets (9.3/10) - FCA, FSC and FSCA licences live. Clear pricing, withdrawals that arrive.
All have ACTIVE licenses. None ever offered binary. No cold-calling. See our full broker rankings.