The lawsuit brought by the United States Commodity Futures Trading Commission (CFTC) against fraudulent binary options scheme Yukom Communications and the entities and individuals associated with it will remain stayed. This becomes clear from an order signed by the Honorable Andrea R. Wood of the Illinois Northern District Court on January 31, 2022.

The document, seen by FX News Group, says that the Court has reviewed the latest status report in this case and rules that this case will remain stayed. By April 27, 2022, the parties will have to file a joint status report setting forth: (1) an update on the status of the related criminal case, (2) whether any party seeks to modify or lift the stay, and (3) whether there has been any activity in the criminal case that impacts the status of the defaulted defendants in this matter.

As FNG has reported, on October 27, 2021, the Court granted defendant Yakov Cohen’s Unopposed Motion to Stay and entered an order staying this case and holding Cohen’s obligation to file an answer in abeyance while the case is stayed.

This Court has entered default as to all eight of the remaining defendants. Specifically, default has been entered against five entities: Yukom Communications Ltd, Linkopia Mauritius Ltd., Wirestech Limited, WSB Investment Limited, and Zolarex Ltd; and three individuals: Yossi Herzog, Lee Elbaz, and Shalom Peretz. The Commission has not yet sought default judgment under Fed. R. Civ. P. 55(b) against the Defaulted Defendants.

The Commission’s Complaint for Injunctive Relief, Civil Monetary Penalties, and Other Equitable Relief, charges Cohen and the Defaulted Defendants with acting in concert in operating an illegal and fraudulent binary options trading scheme, and further alleges that Cohen, along with defaulted defendant Herzog, ultimately owned and controlled the Yukom Entities and masterminded the scheme.

The Complaint asserts that all defendants (i.e. Cohen and the Defaulted Defendants) are jointly and severally liable for the charged violations and seeks an order requiring defendants, as well as any successors thereof, to make full restitution to every person who has sustained losses proximately caused by the violations described in the Complaint and to disgorge all benefits received in connection with the charged violations, among other relief.