UTrade Chief Analyst Extradited to Israel in Ongoing Binary Options Fraud Case

Mexican authorities have extradited Roy Cuzin to Israel in connection with an alleged binary options fraud linked to the former trading firm UTrade, according to Israeli media reports citing the Israeli State Attorney's Office.

Cuzin, who served as UTrade's chief analyst between 2012 and 2015, was wanted in Israel and had been under investigation by the Securities Department of the Israel Securities Authority. He is expected to stand trial following his return. Proceedings against him were previously suspended after he left Israel in 2016 shortly after being questioned under caution.

The case centers on UTrade's activities during the period when the company was managed by founder and chief executive Aviv Talmor. Prosecutors allege that UTrade raised tens of millions of shekels from approximately 600 clients through fraudulent means. According to the indictment, the firm presented false and misleading information regarding investment risks, potential returns, and alleged past performance.

The State Attorney's Office said investors were also misled about how their funds would be used. While UTrade claimed there was no conflict of interest between the company and its clients, prosecutors allege that such a conflict did exist. Authorities further claim that client funds were diverted for purposes beyond trading and that, by 2015, the company no longer had sufficient funds to meet its obligations to investors.

UTrade's founder Aviv Talmor was convicted in 2022 by a Tel Aviv court of defrauding investors of NIS 77 million and was sentenced to four years in prison. The court found that client funds were misused, including paying earlier investors with deposits from newer clients. An indictment in the case was originally filed in 2018, and the company is reported to have raised around NIS 100 million from clients between 2012 and 2015.

After leaving Israel, Cuzin reportedly moved between several countries before being arrested in Mexico in July last year. His extradition to Israel was approved in December.

The case relates to binary options trading, which the U.S. Securities and Exchange Commission defines as a type of options contract where the payout depends entirely on the outcome of a yes-or-no proposition, resulting in either a fixed cash payout or no return at expiration.