Background and Legal Findings
The Czech-registered company Xtrabit s.r.o., associated with Russian-born Australian citizen Vladislav “Vlad” Kogan, has been legally implicated in connection with unauthorized payment processing for the binary options platform Option888. In October 2018, a court ruled that Xtrabit acted as a facilitator in the scheme and ordered restitution payments to affected investors.
However, the judgment has not been executed, as Xtrabit reportedly vacated its offices, which were registered to a virtual address in Prague, and emptied its Czech-based bank accounts.
Involvement in Broader Investigations
Xtrabit and Option888 are subjects of the Vienna Cybercrime Trials, which center on a wider network of investment fraud. Gal Barak, an Israeli citizen and former head of E&G Bulgaria, was convicted in September 2020 and is currently serving a four-year sentence in Austria. He awaits extradition to Germany for further charges.
According to the case files, Barak’s partner, Marina Barak (née Andreeva), also faces legal proceedings related to money laundering and fraud. Xtrabit was reportedly used as part of this network to process investor funds, which were redirected to entities such as MoneyNetint Ltd and other offshore companies under the guise of consulting or marketing services.
Legal Disputes with Media Coverage
Xtrabit and Vlad Kogan have previously challenged media coverage regarding their involvement in these matters. Legal actions were filed in response to published reports, denying any connection to fraudulent activity. However, the original court decision identifying Xtrabit as a financial intermediary in the Option888 case remains in effect and may serve as a precedent in other jurisdictions.
Current Status and Ongoing Inquiry
As of now, Xtrabit is no longer operational, and its corporate presence in the Czech Republic has been dissolved. Regulatory scrutiny from the Czech National Bank and other European authorities has been called into question due to the company’s previous licensing as a payment service provider.
Authorities and legal representatives continue efforts to locate Vladislav Kogan, who is considered a key figure in the Xtrabit operation and may hold critical information related to investor losses.