Israeli Securities Authority Concludes Fraud Probe, Case Sent to Prosecutors

The Israel Securities Authority has concluded a criminal investigation into Daniel Zreizky and other suspects in a complex fraud case and has transferred the findings to the Tel Aviv District Prosecutor's Office (Taxation and Economics) for review regarding potential indictments. The investigation centers on allegations that Zreizky and associates targeted Israeli investors, including through social media, to trade on an unlicensed platform called POCKET OPTION.

Investigators suspect that investors were enticed to trade binary options and other financial instruments by presenting false information and misleading them into believing they would profit, while knowing they were likely to lose their money. Zreizky is also suspected of attempting to conceal his involvement by using "straw accounts" to deposit investor funds.

The probe, which began in 2023 and continues to the present, examined potential violations including offering trades on an unlicensed platform, offering binary options trading contrary to the Securities Law, aggravated fraud, obstruction of justice, operating as an investment portfolio manager and advisor without a license, and money laundering offenses.

The Securities Authority stated that this notification concerns the transfer of the investigation file to the prosecution and does not reflect the investigation's findings or conclusions. The prosecution holds the authority to decide on further proceedings.