Role of PSPs in Broker Fraud Ecosystems Fraudulent online trading platforms would not have been able to flourish without the collaboration of certain payment service providers (PSPs) willing to process funds on their behalf. Scam-Or Project has repeatedly drawn attention to this overlooked issue. Particular scrutiny falls on unauthorized PSPs operating in Germany and the Czech Republic, such as B2G GmbH, StronIT GmbH, Germanika GmbH, and TrustSecure GmbH. Recent investigative work also profiled Czech-based Xtrabit s.r.o., adding further clarity to the network of involved entities. Patterns of Falsified Transactions and Financial Misconduct These non-compliant PSPs play a critical role in…
Author: Tom
Overview: Tracing the Financial Facilitators of Investment Scams Scam-Or Project recently initiated a campaign aimed at identifying unregulated and unauthorized payment service providers (PSPs) involved in processing funds for unlicensed broker platforms such as XTraderFX, SafeMarkets, Golden Markets, Option888, and XMarkets. These payment facilitators play a key role in enabling fraudulent schemes by assisting in financial transactions that deceive unsuspecting investors. Within hours of the campaign’s launch, a substantial number of reports were submitted highlighting these questionable financial intermediaries. List of Newly Identified High-Risk Payment Service Providers The following table outlines PSPs that were most recently reported for handling bank…
Dutch Measures Reflect Broader EU Regulatory Trend Following the broader regulatory trend set by the European Securities and Markets Authority (ESMA), EU countries have begun to implement their own restrictions on high-risk financial products such as binary options and contracts for difference (CFDs). The Netherlands Authority for the Financial Markets (AFM) has officially adopted similar provisions into its domestic legal framework. These regulations, designed to protect retail investors, came into force on April 19, 2019. Context: Investor Losses and Cross-Border Operations In recent years, retail investors across Europe have incurred substantial losses due to the aggressive marketing and operation of…
U.S. Federal Charges Target Illicit Crypto-Linked Financial Activities The U.S. Attorney for the Southern District of New York, in collaboration with the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS), has formally charged Reginald Fowler, a U.S. citizen, in connection with an alleged unlicensed money transmitting operation and bank fraud. His Israeli associate, Ravid Yosef, has also been charged with bank fraud and remains a fugitive. According to the indictment, Fowler and Yosef allegedly operated an informal financial network—often referred to as a “shadow bank”—processing hundreds of millions of dollars in transactions on behalf of cryptocurrency exchanges.…
Mandates from Affected Investors In recent weeks, several hundred investors affected by fraudulent online brokerage platforms have issued legally valid Powers of Attorney (POA) to representatives acting on their behalf. These mandates authorize action to seek restitution for losses incurred through broker schemes such as Option888, Xmarkets, XTraderFX, SafeMarkets, StoxMarket, Blue Trading, and KayaFX. Collectively, these platforms have resulted in significant financial harm, with estimated losses reaching into the hundreds of millions of euros. Various payment service providers (PSPs), both regulated and unregulated, facilitated transactions linked to these operations. Their involvement is now a key focus of efforts aimed at…
Legal Actions Initiated Across the Balkans Recent reports indicate that legal representatives based in Tel Aviv (Israel) and Belgrade (Serbia) are preparing and filing criminal complaints on behalf of European Union (EU) citizens who were victims of online investment fraud schemes. These actions target entities connected to platforms such as Option888, KayaFX, Bealgo, Tradorax, and 23Traders. The focus is on both the scam operators and associated payment processors located in Serbia, Bosnia-Herzegovina, and Montenegro. Companies Under Investigation Among the companies reportedly under investigation are: Hermes Solution DOO Podgorica Montival DOO Podgorica Binex DOO Podgorica These entities have previously been mentioned…
Overview of Veltyco Group Veltyco Group plc is a publicly listed company in the United Kingdom, operating primarily as a marketing entity. The company’s shares are traded on the AIM market, with a market capitalization of approximately £66 million. Established through a reverse takeover in 2016, Veltyco was founded by German entrepreneur Uwe Lenhoff. Uwe Lenhoff’s Role and Background Uwe Lenhoff is a seasoned entrepreneur with extensive experience in the online gambling and sports betting industries. Over the past two decades, he has initiated various ventures related to sports betting, lottery, casino operations, and binary options. Lenhoff has cultivated a…
Leadership Behind Nexus Global We recently received a whistleblower report identifying German entrepreneur Christian Michel Scheibener as the primary figure behind the emerging Nexus Global initiative. According to his LinkedIn profile, Scheibener currently serves as the founder and CEO of Nexus Global, a venture he promotes as “the next big thing.” The project is marketed as a “sustainable and transparent mining company” that also offers the world’s first MultiWallet platform “made in Germany.” Past Involvement: OMNIA Mining Network Scheibener previously co-founded OMNIA Mining Network and served as its CEO. His business partner in that endeavor, Robert Velghe, continues to lead…
Overview A new multi-level marketing (MLM) initiative, Nexus Global, has emerged, spearheaded by Christian Michel SCHEIBENER, known for his previous involvement with the crypto-MLM platform OMNIA. This venture appears to be closely associated with Veltyco Group and Cointed, raising questions about its structure and transparency. Nexus Global has already garnered attention through online communities, including active promotion in dedicated groups such as this Facebook group. Key Associations and Observations Insider Information: Credible sources suggest that Nexus Global’s proposed “Crypto MultiWallet” is being developed in collaboration with Cointed. Website Similarities: The domains www.8crypt.com and www.8crypt.de exhibit identical menus and text modules,…
VELTYCO’s Promotional Push and the Collapse of ESPORTS.COM Recently, one of our affiliated journalists reported from an esports event in Las Vegas, citing growing whispers across the esports industry regarding the suspected collapse of the ESPORTS.COM project and its controversial ICO. The initiative, backed by UK-listed VELTYCO GROUP PLC, is being increasingly characterized as a strategic pump-and-dump scheme. Back in December 2017, VELTYCO announced its entry into the world of blockchain and cryptocurrencies. That single announcement triggered a near 20% surge in the company’s stock price—an obvious reaction during the height of the crypto euphoria. However, as the hype faded,…