Major Blow to European Cybercrime Networks In a coordinated effort involving Germany, Austria, and Bulgaria, authorities have dismantled what is considered one of the largest cybercriminal networks operating illegal broker schemes in Europe — and likely beyond. The arrests of Gal Barak, an Israeli national, and Uwe Lenhoff, a German citizen, mark a turning point in the fight against financial cybercrime. These arrests are seen as a positive development for both the online investment space and for defrauded investors across Europe. Uwe Lenhoff: Germany’s Cybercrime Architect Uwe Lenhoff is believed to have built a vast empire of fraudulent operations through…
Author: Tom
Tradeinvest90 – Another Unlicensed Broker The website www.tradeinvest90.com has been flagged as an unlicensed broker targeting retail traders across Europe. Although it presents itself as a legitimate trading platform, it is actually operated by Celestial Trading Ltd, a company previously linked to numerous illicit schemes. Behind the scenes, this broker is part of a broader network involving Altair Entertainment N.V., VELTYCO GROUP, and other entities associated with financial misconduct. The Corporate Web: Celestial Trading & Altair Entertainment Celestial Trading Ltd is named as the direct operator of Tradeinvest90, although it holds no official licenses or regulatory approval. Altair Entertainment N.V.,…
Introduction: The Facade of Cybercrime Cybercriminals often employ deceptive tactics to maintain a veneer of legitimacy. This includes generating fabricated reviews for fraudulent websites and crafting fictitious biographies for individuals facing legal scrutiny. A notable example is Uwe Lenhoff, a German national arrested under a European arrest warrant. He is alleged to be the mastermind behind several fraudulent online trading platforms and extensive money laundering operations. Despite his incarceration, a new website, www.uwelenhoff.com, emerged, portraying him as a pioneering figure in the online gambling industry. Lenhoff’s Network and Associations Uwe Lenhoff founded and held significant shares in the publicly listed…
Background: Unclear Share Transaction Filing In December 2018, a regulatory filing related to a Veltyco Group PLC shareholder transaction raised questions due to its ambiguous nature. The filing did not clearly specify whether Falk Preussner, a significant shareholder, had purchased or disposed of his shares in the company. This lack of clarity mirrored a broader pattern observed in several of Veltyco’s official filings, which have often been criticized for being vague or confusing. Clarification from Falk Preussner According to Falk Preussner’s statement, he confirmed that he sold a portion of his Veltyco shares, not acquired them as initially speculated. He…
Overview In response to our recent inquiry concerning Blue Trading and Onyx Capital, over 150 individuals have reached out, sharing their experiences. Additionally, more than 120 participants have registered for our fund recovery initiative. Drawing from data associated with other fraudulent broker schemes, we’ve formulated preliminary hypotheses and conclusions to share with our readers. Connection to Other Fraudulent Schemes Evidence suggests that Blue Trading is intricately linked to other notorious scams, notably those orchestrated by E&G Bulgaria and the Veltyco Group. Key indicators include: Shared Financial Channels: Utilization of identical shell companies and bank accounts across these schemes. Common Payment…
Overview LottoPalace, an online lottery platform associated with Uwe Lenhoff’s network, is facing allegations of financial misconduct, including the use of cryptocurrency transactions that may have facilitated money laundering. Customer Grievances and Financial Irregularities Numerous customers have reported issues with LottoPalace, including: Unprocessed withdrawal requests Unauthorized debits from their bank accounts Significant account balances, sometimes exceeding €100,000, remaining inaccessible These complaints suggest potential financial mismanagement within the platform. Involvement of Coinbase’s CB Payments Ltd Investigations have revealed that some LottoPalace customers were instructed to transfer funds to accounts held by CB Payments Ltd at Estonia’s LHV Pank. CB Payments Ltd…
Introduction The collaboration between illicit broker operations and regulated payment service providers (PSPs) has facilitated extensive financial fraud. Notably, German entities such as Wirecard and Payvision have been implicated in laundering funds for fraudulent schemes like Option888 and Altair Entertainment. Despite mounting evidence, German authorities have been criticized for their inadequate response to these activities. Wirecard’s Involvement in Fraudulent Schemes Wirecard, once a prominent player in the global payments industry, has been linked to several fraudulent broker schemes. Investigations have revealed that: Wirecard processed transactions for entities like Option888 and Altair Entertainment, which were involved in deceptive financial practices. Internal…
Introduction The extensive financial losses suffered by retail investors through illicit online broker schemes have been significantly enabled by certain payment service providers (PSPs). These entities, alongside deceptive call centers, are pivotal in the orchestration of such fraudulent activities. Recent investigations have spotlighted two such PSPs—Germanika GmbH and Transact Europe EAD—revealing their involvement in these schemes. Transact Europe EAD: A Bulgarian PSP Under Scrutiny Transact Europe EAD, based in Bulgaria, has been identified as a key player in processing substantial sums from investors involved in illegal broker operations, notably those associated with E&G Bulgaria and Gal Barak. These transactions were…
Overview Xtrabit s.r.o., a Czech-based payment service provider (PSP), has been implicated in facilitating financial transactions for fraudulent online broker schemes. Under the direction of Vladislav “Vlad” Kogan, Xtrabit played a pivotal role in processing payments for entities associated with notorious figures like Uwe Lenhoff and Gal Barak. These operations involved complex money laundering activities that exploited the vulnerabilities of the financial system. Vladislav Kogan: A Profile Name: Vladislav “Vlad” Kogan Birth Year: 1973 Nationality: Australian (born in Krasnodar, Russia) Role: Managing Director and sole shareholder of Xtrabit s.r.o. Kogan’s involvement in the financial sector spans various jurisdictions, with a…
Overview: LottoPalace’s Decline Under Scrutiny LottoPalace, an online lottery platform linked to the now-incarcerated German entrepreneur Uwe Lenhoff and the publicly traded Veltyco Group, is showing signs of operational collapse. Recent developments include the inaccessibility of the client dashboard and a halt in new user registrations, raising concerns about the platform’s viability. Escalating Customer Grievances Over the past months, LottoPalace has been the subject of numerous customer complaints: Closure of its Facebook page following a surge of negative reviews. Allegations of withheld refunds and unprocessed withdrawals. Reports of significant financial losses, with some clients claiming unpaid amounts totaling hundreds of…