Joshua Cartu’s detention raises questions due to the absence of an extradition agreement between Russia and the United States. His fate depends on whether U.S. authorities can confirm the charges and provide necessary documentation within 48 hours.
Arrest Details
Russian Interpol authorities apprehended Canadian-Israeli blogger and motorsport enthusiast Joshua Cartu at St. Petersburg’s Pulkovo International Airport, as reported by Kommersant. The 45-year-old was taken into custody on an international warrant issued by the United States, accusing him of involvement in a binary options fraud scheme.
Fraud Accusations
This arrest is part of a broader global investigation into an alleged fraud network that includes Cartu’s siblings and business partners. Cartu’s once-glamorous lifestyle, often flaunted on social media, starkly contrasts with the serious charges he now faces. Along with his brothers, Cartu is accused of defrauding investors of more than $200 million through illegal binary options operations.
From 2013 to 2018, the Cartu brothers—Joshua, Jonathan, and David—allegedly ran several websites, including BeeOptions, Glenridge Capital, and Rumelia Capital, offering investors seemingly lucrative returns on binary options trades.
However, according to the U.S. Commodity Futures Trading Commission (CFTC), these promises were deceptive, resulting in substantial losses for most investors. The Cartu brothers, along with associates Liav and Nati Peretz, allegedly operated call centers in Israel under the guise of Tracy PAI Ltd, targeting unsuspecting U.S. investors.
The group is accused of misleading clients about their trading expertise, manipulating trade results, and concealing the illicit flow of funds through complex financial channels. The CFTC’s investigation revealed that companies linked to the Cartu brothers processed over $165 million in credit card transactions tied to these fraudulent activities.
Global Legal Fallout
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, imposing penalties and restitution exceeding $204 million.
Cartu’s arrest in Russia is particularly notable given the lack of an extradition treaty between Russia and the United States. Reports indicate that he could be released if U.S. authorities fail to confirm the charges and submit the necessary documents within the 48-hour window.
Should the U.S. confirm the investigation, Russian authorities may pursue a court order for his formal arrest. Cartu’s once-glittering social media presence, filled with images of luxury travel and celebrity encounters, has dramatically unraveled.
This case, dating back to 2015, underscores how the defendants allegedly misrepresented the risks of binary options to investors and manipulated trade outcomes, profiting at the expense of unsuspecting victims. Reports indicate that the defendants extracted $51 million from U.S. investors alone.
