Background: Coordinated Action Against Fraud
In 2018, a European-based initiative was launched in cooperation with legal professionals and digital finance experts to support individuals affected by fraudulent investment platforms. To date, over 1,000 victims are represented, with estimated combined losses of €60 million. The organization assists victims and initiates legal proceedings against fraud operators and their financial enablers.
This interview outlines the progression of these activities and the experience of those involved in exposing and pursuing online financial fraud.
Q1: Can you describe your professional background?
With over 30 years of experience in auditing and tax consultancy, the interviewee began their career at an international accounting firm, working in both Vienna and New York, and later became a partner in charge of IFRS and corporate finance. Following that, they transitioned to working with startups in the digital economy and authored publications on crowdfunding (2014) and blockchain technology (2016), emphasizing a research-driven approach to advisory work.
Q2: What led to involvement in cybercrime investigations?
In March 2017, a complaint was submitted to authorities regarding suspected money laundering activities linked to Uwe Lenhoff, a German businessman associated with binary options platforms such as Option888, XMarkets, and TradoVest. Alongside Joachim Kalcher (formerly of BitRush Corp) and Slovak investor Igor Wollner, there were allegations of attempts to use BitRush’s crypto payment solution to facilitate suspicious financial transactions.
This complaint prompted an Austrian investigation that eventually resulted in the arrest of Lenhoff and Gal Barak in January 2019. Investigators uncovered what appeared to be a wider network involving financial operators and offshore entities connected to binary options fraud.
Criminal complaints were also filed against individuals believed to have played roles in enabling these operations, including the former CEO of Payvision, a payment services provider that had processed transactions for several flagged investment platforms. In multiple jurisdictions, including Austria, Switzerland, and Germany, legal actions have been initiated against parties involved.
Notably, Payvision’s parent company ING later announced the company’s closure.
Q3: What has been the response to these activities?
Efforts to pursue restitution and legal action have not always been met with broad institutional support. While victims and certain law enforcement agencies have been cooperative, financial regulators and supervisory authorities often show hesitation, particularly regarding access to case information or prioritization of victim compensation.
In Austria, legal associations have expressed concern over the role of nonprofit groups supporting victims, citing perceived conflicts with traditional legal services.
Q4: Has there been retaliation?
During 2018 and early 2019, threats were reported in response to public exposure of certain fraud operators. These included intimidation tactics such as unauthorized photography and pressure to remove public reports. Legal complaints were filed, and law enforcement in the EU proceeded with arrests tied to these cases.
More recently, online smear campaigns have emerged, including defamatory websites and manipulated content on social platforms. These aim to discredit ongoing efforts by those advocating for accountability in cyber-financial crime investigations.
Q5: What was the situation with BitRush Corp?
The interviewee served as an accountant for BitRush Corp, a Canadian public company specializing in crypto technologies. In mid-2016, concerns arose over potential misuse of the company’s technology for unauthorized financial activity. A refusal to release accounting documentation followed, and internal conflicts emerged regarding planned partnerships with third parties.
Due diligence revealed that Uwe Lenhoff was involved in activities that raised legal and ethical red flags. This led to the filing of a formal complaint. Internal disputes escalated between the company’s founding members and investors, notably Igor Wollner, resulting in legal proceedings in Canada aimed at taking control of company assets.
Claims were made suggesting that unauthorized fund transfers occurred, but these were not substantiated by external auditors, who issued an unqualified opinion in April 2016. No misconduct was formally confirmed at that time.
Legal proceedings in Canada ultimately proceeded uncontested due to jurisdictional issues. Subsequent arrests and investigations in Europe validated the earlier concerns raised in the internal review process.