Background: Binary Options, Wirecard, and the Lenhoff Case In a revealing report published by Felix Holtermann in Handelsblatt, new details have emerged regarding Wirecard’s indirect role in facilitating fraudulent binary options activity. Specifically, the article outlines how the now-infamous German fintech firm was linked to transactions associated with illegal trading platforms operated by Uwe Lenhoff, including Option888, XMarkets, and TradoVest. Lenhoff, arrested in February 2019, was at the center of a wide-reaching investigation spanning several EU jurisdictions. His network included offshore companies like Altair Entertainment N.V., Capital Force Ltd, and Celestial Trading Ltd, through which these schemes were run. His…
Author: Tom
Overview of an Expanding Cybercrime Network The unfolding case of Uwe Lenhoff, his publicly traded company Veltyco Group PLC, and the associated network of fraudulent trading platforms continues to attract international attention. Authorities across Europe are actively analyzing more than 5 terabytes of digital evidence seized during 35 coordinated raids in multiple countries. Lenhoff has been identified as a key figure behind several illegal broker platforms, including: Option888 XMarkets TradoVest TradeInvest90 Investigations suggest that tens of thousands of retail investors, particularly in Germany, have lost substantial amounts—some estimates put the total damages in excess of €200 million. Key Case Figures…
Stock Plunge and Financial Disclosure On July 16, 2019, shares of Veltyco Group PLC, a company listed on the London Stock Exchange’s AIM segment, dropped nearly 40% by late afternoon trading. The sharp decline followed the release of a board statement indicating that company performance in June had fallen significantly below expectations, creating immediate liquidity concerns. The release vaguely attributed financial strain to the onboarding of a large client, which had reportedly consumed unexpected amounts of cash. However, the language raised more questions than it answered — a common critique of Veltyco’s public communications. Warning Signs: Salaries and Solvency In…
Ongoing Instability Following Lenhoff’s Arrest The situation surrounding Veltyco Group PLC, a company listed on the London Stock Exchange’s AIM segment, continues to deteriorate following the arrest of its founder, Uwe Lenhoff, in early 2019. According to an official statement issued by the company’s board — including Paul Duffon and Marcel Noordeloos — financial results for June 2019 fell short of projections, further straining the firm’s liquidity. The board acknowledged that talks with investors and creditors were underway, but admitted there was no assurance of a successful outcome. Pivoting to Bet90: A Strategy Without Capital? Amid the fallout, Veltyco aimed…
Overview: Criminal Proceedings Against Uwe Lenhoff and Veltyco’s Role In January 2019, German national Uwe Lenhoff, founder of the public company Veltyco Group PLC, was arrested on charges of investment fraud, money laundering, and financial crime. He remains in custody in Germany pending indictment, along with four additional suspects. Authorities believe Lenhoff and his network established an organized structure to carry out fraudulent schemes, including those tied to Veltyco Group PLC and its affiliates. According to documents reviewed by Scam-or Project, Lenhoff has made statements implicating Veltyco’s management and major shareholders in the broader scheme. LottoPalace, Softlotto Ltd, and Deceptive…
Background: Pressure on Scam-or Project and Its Partners Israeli national Gal Barak, alleged operator of boiler room networks and fraudulent brokers such as XTraderFX, SafeMarkets, OptionStarsGlobal, and CryptoPoint, has reportedly launched legal threats against a German hosting provider working with Scam-or Project, an independent platform reporting on financial fraud. According to sources familiar with the situation, these threats follow Barak’s earlier attempts to silence investigative reporting, including reported incidents of DDoS attacks, legal intimidation, and even an alleged bribery attempt of €5 million. The Vienna Meeting and Recorded Admission In January 2019, Barak reportedly arranged a meeting in Vienna through…
Background of the Complaint The Veltyco Group PLC case is now under review by the UK Financial Conduct Authority (FCA). On July 29, 2019, one of the company’s larger shareholders filed a £500 million fraud complaint with the regulator. The complaint, reviewed by Scam-or Project, outlines allegations tied to former board members and executives. Although the identity of the shareholder—a UK-based investor—is known to Scam-or Project, it has not been publicly disclosed at the request of the complainant. Allegations Involving Uwe Lenhoff and Marcel Noordeloos According to written statements provided by the shareholder, core members of Veltyco’s management were allegedly…
Coordinated Enforcement Action in the Balkans In June 2019, law enforcement authorities in Germany and Kosovo conducted a coordinated enforcement operation targeting individuals suspected of involvement in international money laundering schemes. As reported by local media such as Gazeta Blic, the suspects — Betim Tasholli (31), Azem Spahiu (26), and Egzontin Murturi (31) — were summoned for questioning by Kosovan authorities. During the operation: Offices and residential properties were searched Dozens of physical files were reportedly seized Bank accounts were frozen, and Eight real estate properties were confiscated Additionally, luxury items, including a Porsche and expensive watches, were recovered Ties…
Massive Data Breach in Bulgaria On July 17, 2019, major international outlets, including the New York Times, reported on the hacking of Bulgaria’s National Revenue Agency (NRA). The breach exposed the personal information — names, addresses, incomes, and social security numbers — of nearly five million individuals, nearly the entire adult population of Bulgaria. The potential implications are significant. Under EU regulations, companies and institutions that mishandle personal data can face fines of up to €20 million. The NRA now faces scrutiny from regulators and the public alike. Kristian Boykov: White Hat Hacker or Convenient Suspect? At the center of…
Background on LottoPalace Operations LottoPalace is a fraudulent online platform historically associated with Uwe Lenhoff, a German national, and his publicly traded company Veltyco Group PLC. Numerous complaints have been filed by users claiming they were denied withdrawals and payouts. Investigations are currently underway in both Germany and Austria. The platform was reportedly operated in collaboration with Lenhoff’s sister Miriam Sahl and Softlotto Ltd, led by Amit Giorini from Israel. Emergence of a Secondary Scam: Fake Funds Recovery Recent reports from former LottoPalace clients indicate a disturbing trend. Individuals claiming to be former employees of the platform’s boiler room operations…