Israeli Securities Authority Concludes Probe into Alleged $1 Million Pocket Option Fraud

The Israel Securities Authority (ISA) has concluded its criminal investigation into Daniel Zritzky and other suspects accused of defrauding Israeli investors through the trading platform Pocket Option. The case file has been transferred to the Tel Aviv District Prosecutor's Office (Taxation and Economics) for a review of potential indictments.

According to the ISA's findings, Zritzky and associates allegedly targeted Israeli investors, primarily via social media, encouraging them to trade binary options and other financial instruments on Pocket Option. The ISA emphasized that the platform lacks the proper licensing to operate in Israel. Investigators suspect that investors were misled with false representations, with the accused allegedly aware that investors were likely to lose their funds. The ISA estimates that hundreds, possibly thousands, of Israelis invested millions of shekels through the platform.

Further suspicions include Zritzky's alleged concealed involvement in the operation and the use of "straw" accounts to launder investor funds and obscure the connection to the illicit activity. The investigation covered activities from early 2023 to the present.

Allegations under review include soliciting trades on an unlicensed platform, offering binary options contrary to securities law, aggravated fraud, obstruction of justice, and unlicensed investment advisory services, alongside violations of anti-money laundering laws. The ISA had previously issued a warning about Pocket Option in February 2025, stating it was not a regulated entity and that Israeli investors were being solicited. The authority cautioned then about significant risks, including the total loss of invested capital.

In December 2025, the Tel Aviv Magistrate's Court addressed the case during a hearing on extending restrictive conditions for Zritzky. The ISA indicated that the fraud's scope had grown to approximately 4 million shekels. However, the court noted a lack of concrete evidence at the time suggesting Zritzky intended to flee. Zritzky's legal representatives have denied the allegations, stating they have not yet received the investigation materials and will provide a full response to the prosecution.

The ISA stressed that transferring the case to the prosecution does not confirm guilt or guarantee indictments; the final decision rests with the prosecutor's office.