Israel Securities Authority Concludes Pocket Option Criminal Investigation
The Israel Securities Authority concluded its criminal probe into Daniel Zaritsky over the unlawful marketing of the Pocket Option platform to Israeli investors, transferring the case to prosecutors.
The Israel Securities Authority has concluded its criminal investigation into a high-profile case centered on Daniel Zaritsky and other suspects involving the unlawful marketing of the Pocket Option trading platform to Israeli investors. The case file has now been transferred to the Tel Aviv District Prosecutor's Office for Taxation and Economics, which will determine whether sufficient evidence exists to file formal indictments against the individuals involved.
Investigation Findings and Allegations
According to the authority's findings, Zaritsky and his associates targeted Israeli investors primarily through social media platforms, encouraging them to trade binary options and other financial instruments via Pocket Option. The regulator emphasized that the platform operates without a valid license in Israel. Investigators suspect that the recruitment of investors relied heavily on misleading representations and false pretenses, with the suspects allegedly aware that investors were almost guaranteed to lose their capital. Hundreds, if not thousands, of Israelis reportedly invested in the platform, with total funds estimated in the millions of shekels.
"The investigation revealed a systematic attempt to conceal involvement through straw accounts, while exposing investors to severe financial risks on unregulated trading platforms," stated regulatory officials.
Legal Context and Defense Response
An additional aspect of the probe focused on how Zaritsky allegedly hid his financial involvement, utilizing proxy accounts to deposit investor funds and obscure connections to the illicit operations. The investigation spans activities conducted from 2023 onward, covering charges of operating an unlicensed trading platform, offering binary options contrary to the Securities Law, aggravated fraud, obstruction of justice, unauthorized investment management, and money laundering offenses.
In response to the developments, defense attorneys Ronen Menashe and Kobi Ron, representing Zaritsky, stated that their client denies all allegations. They noted that because the case file was only recently transferred and defense counsel has yet to review the evidentiary materials, a comprehensive response will be submitted to the prosecutor's office at the appropriate time. The Israel Securities Authority stressed that transferring the case does not constitute a final determination of guilt or a guarantee that indictments will ultimately be filed.
