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…
Author: Tom
Unveiling the Scams: The Dark World of Binary Options Between 2012 and 2018, a network of fraudulent binary options and forex platforms operated under the leadership of individuals like Gal Barak and Uwe Lenhoff. These schemes deceived countless retail investors, leading to significant financial losses. One such victim was Canadian citizen Frederick Turbide, who tragically took his own life after losing his life savings to these scams. The Boiler Room Playbook: Training for Deception An investigative report by W5 delved into the operations of these fraudulent entities, revealing the inner workings of their boiler rooms. The investigation uncovered a “Boiler…
Overview MoneyNetInt Ltd, a UK-registered payment services provider (psp), has come under scrutiny for its alleged involvement in facilitating transactions for the fraudulent operations led by Uwe Lenhoff and Gal Barak. These operations, involving illegal broker platforms, reportedly defrauded numerous retail investors across Europe. Regulatory Status MoneyNetInt Ltd is authorised by the UK’s Financial Conduct Authority (FCA) under reference number 900190. Despite this authorisation, the company has been implicated in processing transactions for entities associated with fraudulent activities. Involvement in Fraudulent Schemes Investigations have revealed that MoneyNetInt facilitated financial transactions for several entities linked to the Lenhoff-Barak network. These entities…
Background: Enforcement Actions Prompt Relocation In February 2019, coordinated enforcement actions by EU authorities in Germany, Austria, and Bulgaria led to the arrest of Israeli national Gal Barak and German associate Uwe Lenhoff, principals of the cybercrime organization E&G Bulgaria. While Lenhoff remains in custody in Austria, Barak was released into house arrest in Bulgaria for health reasons. Despite this, reports indicate that Barak continues to manage his cybercrime network. Strategic Move to the Philippines Following the closure of boiler rooms in the EU, Serbia, Bosnia-Herzegovina, and Montenegro, E&G Bulgaria is reportedly establishing new operations in the Philippines (source). This…
Overview: How an International Fraud Scheme Operated in Plain Sight The fraudulent broker network led by Uwe Lenhoff and Gal Barak would not have reached such scope without the support of key co-conspirators. Following a series of coordinated international law enforcement actions in February 2019, both were arrested — Lenhoff in Austria and Barak in Bulgaria, where he remains under house arrest pending extradition to Austria. Their operations included a web of illegal online broker schemes such as: Option888 Xmarkets SafeMarkets XTraderFX TradoVest These scams resulted in massive financial losses for unsuspecting retail investors across the European Union. According to…
Authorities Suspect Lenhoff of Large-Scale Online Investment Fraud According to Sueddeutsche Zeitung, authorities believe they have apprehended a high-profile cybercrime suspect in the form of Uwe Lenhoff. The German national is accused of siphoning off millions of euros through illegal online operations targeting unsuspecting retail investors across Europe. Luxury Lifestyle Funded by Fraud? During a raid at one of Lenhoff’s residences, investigators discovered two Ferrari vehicles parked in the garage—symbols of a lavish lifestyle allegedly financed by illicit gains. Authorities suspect that Lenhoff accumulated wealth through fraudulent activities involving binary options and other scam platforms. Ongoing Investigations Law enforcement continues…
The Case of Uwe Lenhoff and a Failing System Originally published in German by Süddeutsche Zeitung journalist Uwe Ritzer on 15 May 2019, this investigative piece explores the scale of cybercrime allegedly orchestrated by Uwe Lenhoff and his network. The European Funds Recovery Initiative, represented by co-founder Elfriede Sixt, contributed significantly to the analysis. Inside the Lenhoff Network: Corporate Shells and Laundering Routes International investigators believe that the bulk of funds from unsuspecting investors were channeled into a complex web of shell companies. Minimal expenses—primarily for boiler room operations—were deducted before routing profits into the hands of scheme leaders. The…
Introduction In May 2019, Wirecard, a prominent German fintech company, issued a press release addressing allegations of its involvement with the binary options scheme Option888, operated by Uwe Lenhoff and his associated entities, including Altair Entertainment N.V. While the statement aimed to clarify Wirecard’s position, it contained several inaccuracies and omissions that have raised further concerns. Misleading Claims in Wirecard’s Statement Wirecard asserted that Option888 possessed a government license to operate its business, stating: “Wirecard actively terminated the customer relationship with Option888, which had a state license to operate its business and was one of the few licensed binary option…
Background and Launch of Coordinated Campaigns Following the arrest of Uwe Lenhoff, founder of Option888, in January 2019, the first public campaign focused on recovering investor losses connected to fraudulent broker platforms was initiated. In February 2019, the arrest of Gal Barak prompted further campaigns centered around entities such as XTraderFX and SafeMarkets. Additional efforts were later expanded to include platforms such as Blue Trading, AlgoTechs/BeAlgo, StoxMarket, and KayaFX. Over the course of five months, more than 800 individuals registered their involvement in these initiatives. Exposing Fraudulent Networks and Platform Closures Information collected from whistleblowers and affected investors has played…
The Unlikely Connection: News Media, Payment Processing, and Broker Scams What do Crypto Daily Pte Ltd, Veltyco Group PLC, Uwe Lenhoff, and TradoVest have in common? At first glance, it may seem like a legitimate crypto news site and an international financial group have little to do with fraudulent online trading platforms. However, closer scrutiny reveals a disturbing link between these entities and a series of large-scale investment scams. Key Questions That Demand Answers Despite multiple warnings and regulatory scrutiny, Crypto Daily Pte Ltd, based in Singapore, has continued to receive victim payments for fraudulent broker schemes like TradoVest and…