Binary Options and Payment Providers: The Payobin and Umbrella OnlineTech Dispute

Overview of Legal Developments in Binary Options Fraud

Although binary options were banned years ago, legal proceedings addressing the associated fraud continue to unfold across the United States, Canada, the United Kingdom, and the European Union. Hundreds of thousands of retail investors who lost money in these schemes are still waiting for justice and compensation. The binary options scams that operated between 2014 and 2017 remain particularly significant for affected investors and for investigative platforms like Scam-Or Project.

Payobin and Umbrella OnlineTech: A Controversial Partnership

Two Israeli nationals, Eyal Nachum and Oded Jeremitsky, were closely connected to Payobin (also known as PayoTech), an Israeli payment services company. In 2014, Payobin entered into a business arrangement with Umbrella OnlineTech LLC, a California-based firm. The agreement aimed to promote Payobin’s payment solutions—specifically for binary options platforms like ICoption—within the U.S. market.

In December 2014, Payobin Ltd (registered in the UK) and Umbrella OnlineTech signed a formal agreement. Under this arrangement:

• Umbrella OnlineTech was responsible for managing payments received from electronic wallets;

• After deducting a service fee, Umbrella would forward the remaining funds to payment processors based on Payobin’s instructions;

• Payobin then facilitated the final transfers to its merchant partners, many of whom were operating binary options or forex schemes.

Court Declaration and Legal Conflict

In legal filings submitted during the lawsuit Payobin vs. Umbrella OnlineTech, Eyal Nachum clearly acknowledged Payobin’s role as a Payment Services Provider (PSP). The company offered various products to Umbrella OnlineTech, including:

• Online wallets

• Credit and debit cards

• Gift cards

• Prepaid cards

As the relationship evolved, financial disputes emerged, leading Payobin to sue Umbrella OnlineTech in a California court. The lawsuit (case number 16-cv-06978-CAS-JC) accused Umbrella of breach of contract and violation of the implied covenant of good faith and fair dealing. The case revealed that:

• Payobin and its executives were involved in facilitating binary options in the U.S.;

• The company acted as a wholesaler of payment solutions for scam-related platforms;

• It had financial dealings with entities like ICoption, StoxMarket, and BinaryUno;

• Payobin earned substantial revenue through its U.S. activities with Umbrella OnlineTech.

Interestingly, Payobin Ltd was formally dissolved during the course of this lawsuit.

ICoption and the GreyMountain Network

ICoption was part of a broader fraudulent ecosystem connected to GreyMountain Management (GMM). As previously covered by Scam-Or Project, GMM was a central player in binary options fraud, managing an expansive network of brokers and facilitators.

From Payobin to Moneta International

Today, Eyal Nachum, along with Tamir Zoltovski, manages Moneta International UAB, a licensed payment services company in Lithuania. Nachum serves as Chairman of the Board. Although Moneta International officially denied providing services to ICoption, historical records show that its affiliated entity, Payobin, was directly involved through Umbrella OnlineTech.

Moneta International also had business connections with firms tied to the GMM ecosystem, such as SSG Media Ltd, which operated as a binary broker in association with GMM.

Ongoing Recovery Efforts

Beyond the historical case of Payobin, ongoing investigations have also identified Nachum, Zoltovski, and Jeremitsky as key figures behind Hermes Solution Podgorica DOO, a payment services provider based in Montenegro. Victims of binary scams—many of whom have joined fund recovery initiatives—may eventually hold this company accountable.

Summary Table: Key Entities and Relationships