ZDTRE Litigation Firm has officially filed a multi-client group litigation valued at over €2.8 million against a network of fraudulent brokers operating from Cyprus and Eastern Europe. The case represents one of the most ambitious collective actions ever launched by the firm, bringing together victims from five different countries.
Background of the Fraud
The litigation stems from dozens of complaints received throughout 2024 and 2025. Victims, primarily from the UK, Spain, Germany, France, and Italy, described identical fraud patterns. Each reported being lured by professional-looking websites advertising high-return forex and crypto trading opportunities.
Account managers would initially present themselves as helpful advisors, providing “winning trades” and offering bonus schemes of up to 300%. Clients were persuaded to invest more with the promise of compounding profits. However, when investors attempted to withdraw funds, they were faced with fabricated roadblocks, such as:
Sudden demands for “tax clearance fees.”
Requests for “AML certificates” costing thousands of euros.
Freezing of accounts with false claims of “irregular activity.”
In reality, no withdrawals were ever processed. Funds were being siphoned through shell companies registered in Cyprus, Bulgaria, and offshore jurisdictions.
ZDTRE’s Litigation Strategy
Recognizing the systemic nature of the fraud, ZDTRE consolidated multiple claims into a group litigation order (GLO). This approach not only strengthened the case by showing a consistent pattern of deceit but also ensured that smaller claims, which might have been ignored individually, gained legal weight when combined.
ZDTRE’s forensic investigators traced payment trails, crypto transfers, and bank intermediaries, uncovering a complex laundering scheme. The findings were presented in a 350-page dossier submitted to the High Court and Cyprus regulatory authorities.
“Our goal is not only to recover funds for individual clients,” said Thomas O’Malley, Lead Litigation Head Partner at ZDTRE, “but also to dismantle the entire fraudulent network and prevent it from preying on more victims.”
Courtroom Developments
In initial hearings, the defense attempted to delay proceedings by disputing jurisdiction. They argued that as the brokers were based in Cyprus, the UK courts lacked authority. ZDTRE countered this with evidence that marketing campaigns were deliberately targeted at UK and EU citizens, making the fraud subject to consumer protection laws across multiple jurisdictions.
The High Court accepted ZDTRE’s motion, establishing shared jurisdiction between UK and EU courts, while simultaneously ordering an asset preservation directive against the broker’s parent company.
The Scale of the Case
The case involves over 40 victims, with combined losses totaling €2.8 million. Individual claims range from €15,000 to €400,000, representing both private investors and small businesses that had been misled into using the broker network’s platforms.
For many, the litigation represents the only hope of financial recovery. Several victims had nearly abandoned hope, believing cross-border fraud to be beyond legal reach.
Wider Implications
This litigation could set a major precedent for how group actions against fraudulent brokers are handled across Europe. By consolidating victims, ZDTRE is proving that no fraudulent operator is “too international” to escape accountability.
“This is more than a financial case,” said O’Malley. “It’s about restoring public confidence in legitimate trading platforms and sending a message that fraud will not be tolerated, no matter how global its operations may appear.”
Next Steps
The case is now moving into the evidence presentation phase, with hearings scheduled over the coming months in both London and Nicosia. ZDTRE has also initiated parallel cooperation with European banking authorities to block further transfers linked to the scam network.
A Call to Action
ZDTRE is urging any additional victims who may have been targeted by the broker network to come forward. The firm believes the fraud extends far beyond the 40 cases already filed.
“Every client who speaks up strengthens the case,” O’Malley added. “Fraudulent brokers thrive in silence. Our mission is to break that silence and secure justice for all.”