VELTYCO AGM: SHAREHOLDERS SHOULD BE AWARE OF THE COMPANY’S BINARY OPTIONS CAROUSEL

The Veltyco Carousel around the binary options brand Option888

Binary options were a very important pillar of VELTYCO‘s business model. In the course of the Reverse Takeover (RTO) and the stock exchange listing in summer 2016, VELTYCO has repeatedly emphasized and confirmed this point in official documents. VELTYCO was the operator of Option888 (www.option888.com), one of the best-known providers of binary options. Option888 Marketing Ltd is still a member of the VELTYCO group of companies.

Because of the legal problems known to the management of VELTYCO and perhaps also to protect themselves against annoying investors, the business model was configured around two distinctive layers:

  • Marketing layer: Domain, website, and marketing (VELTYCO Group)
  • Legal layer: Operator and license holder (offshore companies)

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The legal operator was typically an offshore company and thus not available to authorities and investors. It was never disclosed on the website of Option888 that VELTYCO is actually behind the business and therefore the counterparty for authorities and investors. In addition, the legal operators were swapped again and again. Since 2016, the financial market supervisory authorities have issued warnings regarding Option888‘s business and requested that it be discontinued (cease and desist orders). As soon as such a request from a financial market supervisory authority was issued, Option888’s legal operator has changed again. This approach by VELTYCO and the persons involved must be described as intentional and systematic deception of authorities and investors.

Option888 started in 2015 with ALTAIR ENTERTAINMENT N.V. and PAYIFIC LTD (link to web archive) as legal operators. Both companies are under the control of VELTYCO founder Uwe LENHOFF, who was also a member of the VELTYCO Executive Board until March 2018 and is still active as a manager today.

PAYIFIC LTD was replaced by CAPITAL FORCE LTD at the beginning of 2016. Later the Cypriot NOVOX CAPITAL LTD took over the role of the legal operator. In December 2016, the Italian Financial Market Authority CONSOB issued a warning and ALTAIR ENTERTAINMENT LTD vanished into thin air. In 2017 the Austrian FMA issued a warning. In 2018, additional warnings were issued by the German BaFin and the UK FCA. The BaFin issued a cease and desist order against CAPITAL FORCE LTD.

Consequently, in the carousel of the VELTYCO Group, CAPITAL FORCE LTD was replaced by CELESTIAL TRADING LTD. In June 2018, BaFin also ordered CELESTIAL TRADING LTD to cease business operations. This game can continue until the authorities and investors finally realize that in reality the public-listed VELTYCO and its network of affiliated and/or related companies and persons are behind this commercial deception system. In fact, VELTYCO seems to be the beneficial owner of all parties to the Option888 carousel.

In this respect, the legal representatives of Option888 investors should examine the claim rights against VELTYCO. Shareholders should definitely ask the VELTYCO management about this scenario in the upcoming AGM. In case you need and/or have information please get in contact with us using the form below.

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