Binary Options – The Core of VELTYCO’s Business Model
Throughout the Reverse Takeover (RTO) and the subsequent stock exchange listing in summer 2016, VELTYCO repeatedly emphasized that binary options formed a crucial part of its business model. Notably, VELTYCO operated Option888 (www.option888.com), one of the most recognized binary options platforms. Even today, Option888 Marketing Ltd remains part of the VELTYCO Group.
To shield itself from potential legal risks and frustrated investors, VELTYCO structured its operations into two distinct layers:
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Marketing Layer: Website, domain, and marketing activities (managed by the VELTYCO Group)
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Legal Layer: Operations and licensing (managed via offshore companies)
The real operator — typically an offshore entity — was never disclosed on the Option888 website, making it difficult for regulators and investors to establish a direct connection to VELTYCO. Moreover, the platform’s legal operators were frequently swapped, particularly after warnings from financial regulators.
Since 2016, multiple financial supervisory authorities have issued warnings or cease-and-desist orders regarding Option888. Each time, the legal operator would mysteriously change, suggesting a deliberate strategy to evade regulatory scrutiny.
The Evolution of Option888’s Legal Operators
Initially, Option888 listed ALTAIR ENTERTAINMENT N.V. and PAYIFIC LTD as its operators — both companies controlled by VELTYCO founder Uwe LENHOFF, who served on VELTYCO’s executive board until March 2018 and continues to manage aspects of the business.
Changes to the legal structure unfolded as follows:
|
Year |
Legal Operator |
Event |
|
2015 |
ALTAIR ENTERTAINMENT N.V. / PAYIFIC LTD |
Initial operators |
|
Early 2016 |
CAPITAL FORCE LTD |
PAYIFIC LTD replaced |
|
Late 2016 |
NOVOX CAPITAL LTD |
New operator after CAPITAL FORCE LTD |
|
Dec 2016 |
CONSOB issues warning |
ALTAIR ENTERTAINMENT LTD disappears |
|
2017 |
Continuing regulatory scrutiny |
|
|
2018 |
BaFin and FCA warnings |
BaFin issues cease-and-desist to CAPITAL FORCE LTD |
|
Mid-2018 |
CELESTIAL TRADING LTD |
New operator, also later targeted by BaFin |
This continual reshuffling of operators reflects a systematic attempt to mislead investors and authorities. Ultimately, the public-listed VELTYCO appears to have remained the beneficial owner of all entities within the Option888 structure.
Shareholders: Critical Questions for the AGM
Given the history of deception surrounding Option888, legal representatives for affected investors should seriously consider examining VELTYCO’s liability. Likewise, shareholders should raise these concerns with management at the upcoming AGM.
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