Overview: Financial Trouble Hits Veltyco’s German Arm
The insolvency of eSports.com AG represents yet another critical failure within the corporate network tied to German entrepreneur Uwe Lenhoff, the key figure behind the publicly traded Veltyco Group PLC. Launched in 2017 with high aspirations in the esports content sector, the company has now officially filed for insolvency.
According to The eSports Observer, on March 15, 2019, the district court in Munich approved a provisional insolvency order. This legal measure authorizes a court-appointed administrator to take control of eSports.com AG’s assets until a final decision is made on the bankruptcy petition.
Key Milestones and Events
|
Date |
Development |
|
2017 |
eSports.com AG founded as part of Veltyco’s esports expansion |
|
Late 2017 |
ICO launched, claiming to raise $5.8 million |
|
Early 2019 |
Concerns emerge over the company’s financial transparency |
|
March 15, 2019 |
Munich court initiates provisional insolvency proceedings |
Disputed ICO and Internal Conflict
In late 2017, eSports.com AG launched an initial coin offering (ICO), publicly stating that $5.8 million had been raised. However, internal sources indicate that the actual amount collected was significantly lower, with suggestions that the figures were inflated to boost the company’s image.
Additionally, there was internal turmoil. Benjamin Föckersperger, the company’s co-founder and Chief Esports Officer, claimed in an interview with Inc. that the company had invested a “seven-figure” sum solely in acquiring the esports.com domain. Föckersperger was later dismissed following disagreements with Uwe Lenhoff.
Lenhoff’s Influence and Rejected Merger Plans
Sources familiar with the matter report that Uwe Lenhoff, as the main shareholder of Veltyco Group, sought to merge eSports.com AG with Veltyco Group PLC. However, other shareholders strongly opposed the idea, leading to the plan’s collapse.
Lenhoff, arrested in 2019, was already under scrutiny for his role in fraudulent broker platforms and ongoing financial investigations. The fall of eSports.com AG now further exposes the unstable foundations and mismanagement within his wider business empire.
What Comes Next?
The insolvency of eSports.com AG is likely to raise further questions about the governance of Veltyco-linked companies and the legitimacy of related fundraising efforts, particularly the ICO. As insolvency proceedings unfold, creditors and former investors will be monitoring closely for updates regarding asset recovery and the potential involvement of other entities in the group.
Conclusion
The bankruptcy of eSports.com AG signals the ongoing unraveling of a business network once marketed as innovative but now increasingly associated with financial irregularities and failed ventures.