Regulatory Fine Against Novox Capital: A Symbolic €100 Penalty

CySEC’s Decision

The Cyprus Securities and Exchange Commission (CySEC) announced that Novox Capital Ltd received an administrative fine of just €100. The penalty was imposed because the company failed to submit the QST-CIF Form for the first quarter of 2022 within the required deadline, as mandated by CySEC Circular C497.

As of October 1, 2022, Novox Capital voluntarily suspended its operations, citing restructuring and acquisition processes. Its website has since gone offline.

Novox Capital and Its Role in the Binary Options Industry

Novox Capital was a Cyprus-based financial services provider operated by three Israeli nationals: Israel Bash, Shay Hillel, and Yehoram Hillel. At its peak, the company played a significant role in the global binary options business, which later became widely associated with fraudulent practices.

Platforms Operated

In early 2016, Novox Capital officially ran multiple binary options platforms, including:

• OptionBit

• OptionStars

• OptionMerchants

• STXoptions

• ZoomTraderGlobal (previously ZoomTrader in 2015)

Later that same year, RoyalPIP was also added to the company’s portfolio of regulated brands.

Warnings from Regulators

Starting in late 2014, Novox Capital’s platforms came under scrutiny by regulators across North America and Europe.

For example:

• In December 2016, the British Columbia Securities Commission (BCSC) in Canada issued a warning against Novox Capital, specifically naming OptionStars and OptionStarsGlobal.

• Other regulators from the UK, France, Germany, Austria, and Belgium also released similar warnings.

Repeated Compliance Failures

Over the years, Novox Capital accumulated a history of compliance breaches. One notable case occurred in early 2018, when CySEC imposed a substantial fine of €175,000 for various regulatory violations.

Links to Notorious Figures

Novox Capital and its beneficial owners maintained close business ties with well-known cybercrime figures, including Uwe Lenhoff. In 2016, the company signed a marketing and revenue-sharing agreement with Veltyco Group, Lenhoff’s enterprise, to promote and profit from the binary options platform ZoomTraderGlobal.

Call for Information

The Scam-Or Project continues to investigate the activities and individuals linked to Novox Capital. If you possess any information regarding the company or its operators, you are encouraged to report it through our website.