Russian Interpol authorities have detained Canadian-Israeli blogger and racing enthusiast Joshua Cartu at St. Petersburg's Pulkovo International Airport, Kommersant reported. The 45-year-old was apprehended based on an international warrant issued by the United States for allegations of a binary options fraud scheme.

Fraud Allegations

His arrest marks the latest chapter in a global fraud investigation that has reportedly ensnared his siblings and business associates. Cartu's lavish lifestyle, frequently showcased on social media, now stands in stark contrast to the charges he faces. Cartu, along with his brothers, faces allegations of defrauding investors out of more than $200 million through illegal binary options schemes.

Between 2013 and 2018, the Cartu brothers, Joshua, Jonathan, and David, allegedly operated websites like BeeOptions, Glenridge Capital, and Rumelia Capital, promising lucrative returns on binary options trades.

However, according to the US Commodity Futures Trading Commission (CFTC), these promises were false, with most investors suffering significant losses. The Cartu brothers, alongside their associates Liav and Nati Peretz, are accused of running call centers in Israel under the guise of Tracy PAI Ltd, targeting unsuspecting US customers.

They allegedly misled clients about their expertise, manipulated trade outcomes, and obscured the flow of illicit funds through complex financial transactions. The CFTC 's investigation also uncovered that companies tied to the Cartu brothers processed over $165 million in credit card payments related to these fraudulent activities.

Global Investigation and Legal Repercussions

In March 2024, the United States District Court for the Western District of Texas found Jonathan Cartu, Liav Peretz, and Nati Peretz guilty of fraud and illegal binary options trading and ordered them to pay over $204 million in penalties and restitution.

Cartu's arrest in Russia is particularly significant, given the lack of an extradition treaty between Russia and the United States. Local reports suggest he could be released if US authorities do not confirm the charges and submit the necessary documents within 48 hours.

However, if the US confirms the investigation, Russian authorities may seek a court order to formally arrest him. Cartu's social media persona, filled with images of him jet-setting around the globe and mingling with celebrities, has taken a sharp fall.

The matter, dating back to 2015, highlighted that the defendants misrepresented the risks related to binary options to users and manipulated trade outcomes, making profits at the expense of unsuspecting investors. The defendants reportedly obtained $51 million from users in the US.