Jack Dorsey‘s payment conglomerate, Block, has announced its earnings results for the second quarter of 2024, revealing a notable 9% increase in Bitcoin revenue year over year. In its recent shareholder letter, Block reported a Bitcoin revenue of $2.61 billion for Q2 2024, contributing to a total net revenue of $6.16 billion for the quarter. This represents an 11% growth compared to the same period in 2023. Cash App Performance Excluding Bitcoin income, the company’s revenue stood at $3.54 billion, marking a 13% year-over-year increase. Block recognizes Bitcoin revenue as the total amount of BTC sold to customers. Block‘s Cash App generated $4.13 billion in revenue during the quarter. Excluding Bitcoin transactions, this figure was $1.52 billion. The Cash App also reported a significant increase in Bitcoin gross profit, reaching $67 million in Q2 2024, a 52% rise compared to the previous year. This growth was primarily driven by an increase in the average price of Bitcoin, which has surged over 45% in 2024, currently trading at $64,777. Bitcoin Holdings and Financial Position The company disclosed a $70 million loss from its Bitcoin reserves. As of June 30, 2024, Block held approximately 8,211 BTC on its balance sheet for investment purposes, with a fair value of $515 million. During the past quarter, Block acquired around 173 BTC. Block‘s total gross profit rose by 20% year-over-year, reaching $2.23 billion. Net income attributable to common shareholders was $195 million for Q2 2024, up from $102 million in the same period last year. Capital Raising and Strategic Plans In May, Block announced plans to raise $2 billion through senior unsecured notes for qualified institutional investors. The company ended Q2 2024 with $10.3 billion in available liquidity, including the net proceeds from this debt offering. According to the company, these funds will be used for debt repayment, acquisitions, strategic transactions, capital expenditures, investments, and working capital. Implications for Investors Block‘s Q2 2024 results highlight the company’s strong performance in the cryptocurrency sector, particularly through its Cash App. The significant growth in Bitcoin revenue and gross profit, coupled with strategic capital raising, positions Block for continued expansion and resilience in the volatile crypto market. Investors will be watching closely to see how Block leverages its increased liquidity and navigates the evolving financial landscape. Share Information with FinTelegram CategoriesCyberFinance Financial DataTagsBlockJack Dorsey

As part of our “Follow the Money” research strategy, we look at online casino and gambling schemes and analyze the facilitating payment processors. We often discover FinTechs such as Revolut, MoonPay or Binance Pay, but also many open banking service providers such as Noda. We also discovered a number of facilitating payment processors at the online casinos of the Starscream Group in addition to illegal activities. Here is our review. Compliance Check The Starscream Group operates a range of online casinos and gambling platforms through Starscream Limited, which is registered in Saint Lucia. This entity has a license from the Kahnawake Gaming Commission, but this is not sufficient to acquire players in Europe or other regions. However, in our reviews conducted in July 2024, it was no problem to register as a resident of UK or EEA jurisdictions. Apart from the multilingualism, which also addresses German players in particular, payment options and payment processors for the EEA regions are also integrated. Deposits are (partially) limited per transaction, but even without a KYC check, you can theoretically make unlimited deposits by bank transfer, credit/debit card, e-voucher, e-wallet or crypto. All this results in a clean red compliance rating. Once again, we don’t understand why the payment processors involved go along with this. Their compliance systems should be able to algorithmically detect the illegality of the activities without any problems. Facilitating Payment Processors The casinos of the Starscream Group use Stardust Global CCS Ltd, registered in Cyprus, as their payment agent. Players make deposits to this Cypriot payment agent using a variety of payment options. Here are the key findings regarding the facilitating payment processors: We once again found Noda at SugarCasino, Zinkra Casino, and BluVegas. This time, Noda uses the domain WLPay.io to process instant bank transfers and to run the payment gateway. According to Urlscan, WLPay.io is clearly assigned to Noda. At Crazeplay, on the other hand, we discovered the EPRO gateway for the Instant Bank Transfer and the bank details of Olky Payment Service Provider S.A. Behind it, a separate IBAN is generated for each customer when making a deposit. We also found the Bulgarian open banking service provider Contiant and YAPILY for Instant Bank Transfers. Furthermore, we found German and Austrian banks, such as Unicredit, Raiffeisen, and Volksbanken, as deposit options at SugarCasino, which seems to focus primarily on German-speaking players. Revolut also appears as a payment processor. We found Bitpace as a crypto payment processor at all Starscream Group casinos. Bitpace has licenses as a crypto service provider in Estonia, Lithuania, and Bulgaria. The Austrian CoinsPaid and its sister brand CryptoProcessing also act as crypto payment processors. We also discovered MiFinity at all casinos in the Starscream Group, whose market share appears to be growing steadily. There is hardly an illegally operating online casino scheme without MiFinitty. In addition, we have of course discovered the usual suspects such as Jeton, as well as the e-voucher schemes CASHlib or Cash-to-Code or the Paysafe Card. This is no surprise. Starscream Key Data Trading namesCrazeplay, SugarCasino, BluVegas, LocoWinZinkra Casino, Anarchy CasinoBusiness activityOnline casino and gambling operatorsStatusActiveDomainsKahnawake Gaming CommissionLegal entityStarscream LimitedStardust Global CCS LtdJurisdictionsSt. LuciaAuthorizationKahnawake Gaming ComissionRelated individualsnot disclosedPayment agentSTARDUST GLOBAL CCS LTDPayment optionsbank transfer, SEPA Instant, credit/debit card, e-wallets, cryptoPayment GatewayPraxisPayment processorsEPro, Olky Payment Service Provider S.A.Contiant, Rapid, Noda (wlpay.io)CASHlib, Paysafe CardJeton, Skrill, Neteller, MiFinity,CoinsPaid, CryptoProcessing, Bitpace, Binance PayCompliance ratingRed Share Information We encourage anyone with knowledge about the Starscream Group and its online casino operations, its facilitators, or any related activities to come forward. Your information could be pivotal in understanding and exposing potentially illegal or unethical practices within this organization. Your contribution is vital in holding the key individuals accountable and safeguarding the integrity of online gaming and financial transactions. Share Information With FinTelegram CategoriesReviews & RatingsTagsBinance PayBipaceCASHlibCoinsPaidCryptoprocessingeProMiFinityNetellerNodaOlky Payment Service ProviderRapidSkrillStardust Global CCSStarscream

The delivery procedure has been going on for many months now and seems to be coming to an end. The co-founder of Terraform Labs and accused fraudster, Do Kwon, is set to be extradited from Montenegro to his native South Korea following a ruling from Montenegro’s Appellate Court. This decision confirms an earlier ruling by the High Court of Podgorica, prioritizing South Korea’s extradition request over that of the United States. Background of the Case Do Kwon has been in custody in Montenegro since March 2023 after being arrested for attempting to travel to Dubai using a fake Costa Rican passport. This arrest followed Interpol’s issuance of a red notice for Kwon in September 2022, spurred by the $40 billion collapse of the Terra/LUNA ecosystem in May 2022. This collapse marked the beginning of a series of high-profile cryptocurrency failures, including the downfall of FTX, one of the world’s largest crypto exchanges. Following Terra’s implosion, Kwon fled, leading to an extensive international manhunt. His arrest in Montenegro culminated in a four-month prison sentence for using falsified documents. Even after completing this sentence, Kwon remained in custody due to the ongoing extradition battle and the confiscation of his legitimate passport to prevent his escape. Extradition Decision and Legal Battles Thursday’s ruling by the Appellate Court of Montenegro is expected to conclude a prolonged legal struggle over Kwon’s extradition. Initially, South Korea and the U.S. both sought his extradition to face charges related to the Terra/LUNA collapse. Kwon had previously contested rulings favoring his extradition to the U.S., leading to a series of legal reversals and delays. The Supreme Court of Montenegro had intervened to postpone an earlier decision to extradite Kwon to South Korea, following objections from the country’s top prosecutor. This intricate legal tug-of-war highlighted the complexities involved in high-profile international extraditions, especially in cases involving significant financial crimes. Final Decision and Implications Ultimately, the final decision on Kwon’s extradition lies with Montenegro’s Minister of Justice, as indicated by the Office of the Supreme State Prosecutor. This decision comes amid reports that Montenegro’s Prime Minister, Milojko Spajic, is personally invested in Terraform Labs, adding another layer of intrigue to the proceedings. As of now, no specific date has been set for Kwon’s extradition to South Korea. The outcome of this high-stakes legal battle will be closely watched by international regulators and the cryptocurrency community, given the significant implications for financial crime enforcement and cross-border cooperation in tackling fraud within the crypto sector. CategoriesCourt Cases tickerTagsDo KwonFTXTerra LunaTerraform Labs

Christiaan A. Alberdingk Thijm, a partner at the prestigious Amsterdam-based law firm bureau Brandeis, is known for his extensive experience in complex litigation involving high stakes in information law. He claims expertise in reputation management. Among his clients are Rudolf Booker and Dirk-Jan Bakker. The latter launched a SLAPP action against FinTelegram via Thijm and other lawyers, which raised several questions about the motives and implications behind this legal battle. The Clientele: Booker and Bakker Dirk-Jan Bakker and Rudolf Booker have a common past linked to Uwe Lenhoff and the Veltyco Group. Booker, the founder and former CEO of the high-risk payment processor Payvision, has a controversial history. Under Booker’s leadership, Payvision laundered money for various fraudulent schemes orchestrated by cybercrime activist Uwe Lenhoff and the Veltyco Group PLC. Lenhoff became a reseller for Payvision and acquired another cybercrime organization as a client for the payment processor: Gal Barak‘s online fraud trading empire around XTraderFX. In 2020, Barak was convicted of investment fraud and money laundering. The criminal files show that Barak’s fraud schemes laundered dozens of millions of stolen money via Payvision. Dirk-Jan Bakker, an Amsterdam real estate and gambling investor, was not only Lenhoff’s business partner but also a co-founder, investor, and second-largest shareholder in Veltyco. In 2015, Bakker served as a director in Lenhoff’s Sheltyco Enterprises Group Ltd, which was acquired by Bakker’s Velox3 in a reverse takeover in 2016. Velox3 was later renamed Veltyco Group PLC, and Lenhoff became the CEO. Bakker’s advisor, Mark Rosman, served as director. In addition, Vistra Group, controlled by Bakker as a sole proprietorship, founded offshore companies such as Altair Entertainment or Payific for Lenhoff, which were later used as operators of fraudulent trading platforms. The Veltyco of Lenhoff and Bakker did the marketing for these fraudulent trading platforms and acquired victims. While Lenhoff claims in his statements in the criminal file that Bakker was involved in the operational management and that he therefore also withdrew from Veltyco, Bakker claims that he had nothing to do with the operational management of the company. This is a case of testimony against testimony. Lenhoff was already a convicted fraudster and had served prison time. After Lenhoff’s death, Veltyco was rebranded as B90 Holdings PLC. Lenhoff, who died in prison in 2020 (cause of death unknown), ran notorious operations like the online trading system Option888 using Veltyco as a front. These fraud schemes left tens of thousands of victims in their wake. Booker, through Payvision, facilitated the laundering of tens of millions of euros stolen by Lenhoff’s schemes. Following a complaint of the Dutch Financial Markets Authority DNB, Booker faced prosecution and punishment for systematic money laundering. Read more about the DNB investigations in the Payvision case. Both Booker and Bakker had close personal and professional ties with Lenhoff. According to both Lenhoff’s and Booker’s testimonies to law enforcement agencies, Bakker introduced Lenhoff to Booker and Payvision. Furthermore, Bakker extended substantial personal support to Lenhoff, including a €1 million loan for a real estate investment in Istanbul and the use of his yacht and private jet. Download the loan agreement between Bakker’s Diman and Lenhoff here. The Payvision-ING Connection In a move that baffled many, ING acquired the high-risk payment processor Payvision in 2018 at a valuation of €360 million despite its dubious activities. This acquisition, made under the leadership of then-CEO Ralph Hamers, later became a significant point of contention. After Hamers moved to UBS in 2020, ING announced the phasing-out of Payvision in 2021. This acquisition cost ING hundreds of millions and made Booker a lot of money. We do not know why ING did not take legal action against Booker. Christiaan A. Alberdingk Thijm Victims of the fraud schemes associated with Veltyco, Lenhoff, and Barak have since sued both Payvision and ING, leading to multimillion euro claims. The acquisition now stands as one of ING‘s most controversial decisions, with its repercussions still unfolding. Legal Maneuvers and False Claims Against FinTelegram Booker and Bakker, both linked to Veltyco in their capacities, have turned to Christiaan A. Alberdingk Thijm to restore their reputations. Essentially, this means taking action against FinTelegram, the only investigative medium to report on Veltyco’s unresolved machinations for years. FinTelegram also knows that victims are making efforts to sue those responsible in the Veltyco environment and Veltyco itself. Booker’s statement regarding Lenhoff and Bakker Booker has chosen Thijm as his lawyer to file a lawsuit against Het Financieele Dagblad in Amsterdam. The newspaper had claimed that Booker had defrauded ING in the sale of Payvision and that the authorities were investigating this. The fact was, however, that ING did not feel defrauded, and the authorities did not investigate this. Evidently, ING was too stupid to understand the money laundering system of the high-risk payment processor. For Bakker, Thijm is leading a SLAPP action against FinTelegram to silence the platform’s reporting on Veltyco and its cybercrime network. Bakker, in particular, disputes FinTelegram’s claims that he was a partner of Lenhoff and denies introducing Booker and Lenhoff, contrary to documented statements in the criminal file. False abuse claim brought by Bakker’s Austrian lawyer Thijm’s approach has included insinuating about FinTelegram’s criminal activities to their lawyer. Additionally, Bakker employed another lawyer in Austria, Christoph Voelk, who, on behalf of Bakker, falsely claimed to various organizations that court documents would exist to prove that FinTelegram articles were false. However, no such rulings exist. With false and defamatory statements, Voelk has tried to shut down FinTelegram reports about Veltyco and Bakker. On the contrary, FinTelegram’s reporting is substantiated by criminal files and due diligence investigations into Veltyco and Bakker’s role, confirming the platform’s claims. As far as FinTelegram is aware, the public prosecutors in Germany are still working on charges in the Veltyco enironment. The Broader Implications Bakker’s SLAPP action is an attempt to suppress investigative journalism and evade accountability. This legal tactic highlights the ongoing struggles faced by journalists and platforms like FinTelegram in exposing financial misconduct and cybercrime. The complex web connecting Payvision, Veltyco, and their key players like Booker and Bakker underscores the persistent challenges in the fight against financial fraud and money laundering. Despite the legal pressure, FinTelegram remains committed to uncovering and reporting the truth, ensuring that those involved in such activities are held accountable. As the legal battle unfolds, Christiaan A. Alberdingk Thijm‘s role in this high-stakes SLAPP case continues to attract scrutiny, raising questions about the lengths to which some will go to silence dissenting voices and protect their reputations in the shadowy world of financial crime. Share Information with FinTelegram CategoriesFinTelegram tickerTagsB90 HoldingsDirk-Jan BakkerGal BarakINGPayVisionRalph HamersSheltyco EnterprisesVelox3VeltycoVeltyco Group

The U.S. Securities and Exchange Commission (SEC) has charged Abraham Shafi, the founder and former CEO of the social media startup Get Together Inc. d/b/a IRL, with defrauding investors by providing false and misleading information about the company’s growth and concealing personal use of company funds. Shafi allegedly raised $170 million from investors, presenting IRL as a fast-growing social media platform. Allegations of Fraudulent Activity According to the SEC’s complaint, Shafi raised approximately $170 million from investors by presenting IRL as a rapidly growing social media platform with an organic user base of 12 million. In reality, the company spent millions on advertisements offering incentives to download the app. Shafi reportedly masked these marketing expenses through understated offering documents and by routing payments through third parties. Furthermore, Shafi is accused of failing to disclose that he and his fiancée, Barbara Woortmann, used IRL‘s business credit cards to cover personal expenses, including clothing, home furnishings, and travel, amounting to hundreds of thousands of dollars. Regulatory Response The SEC’s complaint, filed in the U.S. District Court for the Northern District of California, charges Shafi with violating the antifraud provisions of federal securities laws. The SEC seeks permanent injunctive relief, civil money penalties, disgorgement with prejudgment interest, and a bar against Shafi serving as an officer or director of a public company. Woortmann is named as a relief defendant, with the SEC seeking disgorgement of the personal expenses she charged to the IRL credit card, paid with investor funds. Share Information with FinTelegram CategoriesInvestment Schemes SECTagsAbraham ShafiBarbara WoortmannGet TogetherIRL

“The payments reset no one saw coming,” is the marketing headline of the Lithuanian paytech Kevin. In a sense, this seems to be a self-fulfilling prophecy. The Bank of Lithuania has taken bold regulatory action against Kevin EU, UAB, suspending its ability to onboard new customers. This decision comes in light of Kevin‘s repeated failures to meet essential regulatory requirements, particularly in the areas of financial transparency, capital adequacy, and internal controls. Regulatory Non-Compliance Issues Kevin (website) has been identified as being almost four months overdue in submitting its audited annual accounts. The company has consistently postponed the submission deadline and has failed to provide auditors with the necessary information to complete the audit. This lack of compliance with capital adequacy requirements and failure to ensure adequate internal control has prompted serious concerns about the company’s operational stability and the safety of consumer interests. Regulatory Actions Imposed In response to these critical breaches, the Bank of Lithuania has appointed a temporary representative, the insolvency agency Valnetas (website), to supervise Kevin‘s activities. This independent supervisor is tasked with overseeing the company’s operations and ensuring that Kevin addresses its compliance issues and aligns with regulatory standards. Additionally, specific business restrictions have been applied to safeguard the interests of consumers and ensure the sound operation of the company. Go to the Kevin profile on PayRate42. Implications for Kevin The halt on new customer onboarding represents a substantial operational and reputational challenge for Kevin. To regain the trust of both regulators and customers, the company must prioritize rectifying its regulatory shortcomings. This incident underscores the critical importance of regulatory adherence in the financial technology sector, where compliance failures can result in severe operational disruptions. Report Compliance Issues to FinTelegram CategoriesBank of Lithuania ComplianceTagsKevinKevin EU

Naudapay Limited, operating under the brand name Noda.live, is a UK-based payment institution regulated by the Financial Conduct Authority (FCA). Noda.live provides open banking services, facilitating secure and efficient payment processing for various sectors, including online gaming. However, recent investigations have raised concerns regarding its potential involvement in illegal online casino activities, particularly through the domain https://bankstransfer.com. Connection to Online Casinos The new domain: We have identified a strong relationship between the domains https://bankstransfer.com and https://openbanking.noda.live, suggesting that the former may serve as an API for open banking transactions related to Naudapay Limited (Noda.live). Almost 90% of the referral traffic to bankstransfer.com comes from openbanking.noda.live, and correspondingly, almost 95% of outbound traffic from openbanking.noda.live primarily directs users to bankstransfer.com. No website is connected with this domain. The 404 error when accessing bankstransfer.com directly suggests the notion that it functions primarily as a backend service or API rather than a consumer-facing website. Association with Unlicensed Operators: Noda.live is linked to online casinos such as Zet Casino and Great Win, which Liernin Enterprises Ltd operates, registered in the Marshall Islands. These casinos hold an offshore license from the Philippine Amusement & Gaming Corporation but are reportedly acquiring players in Europe without the necessary regulatory permissions. This raises significant compliance issues regarding their operations in jurisdictions that require local licensing. Payment Processing Role: The domain https://bankstransfer.com appears to function as a payment processing API for Noda.live, facilitating transactions for these online casinos. The high volume of referral traffic from Noda.live to bankstransfer.com, coupled with the substantial outbound traffic to the casinos, suggests that bankstransfer.com is integral to their payment processing infrastructure. The analysis of the various subdomains via Urlscan also revealed that Bankstransfer.com is closely linked to the Noda.live system. Therefore, there is no doubt that Bankstransfer.com is controlled and managed by Nodapay. Read our Zet Casino review here. Regulatory and Compliance Concerns Legal Implications: The lack of regulatory permission for the casinos to operate in Europe suggests that any payments processed via bankstransfer.com could be deemed illegal. This situation poses a risk not only to the casinos but also to Noda.live, as facilitating transactions for unlicensed operators could lead to regulatory scrutiny and potential sanctions. FCA Regulations: As an FCA-regulated entity, Naudapay Limited d/b/a Noda.live is obligated to adhere to strict compliance standards, including anti-money laundering (AML) and know-your-customer (KYC) regulations. The association with unlicensed gambling operations could jeopardize its regulatory standing and expose it to legal liabilities. Risk of Financial Crimes: The involvement with unlicensed online casinos raises concerns about potential money laundering and other financial crimes. Payment processors are often scrutinized for their role in facilitating transactions that may be linked to illegal activities, which could result in reputational damage and financial penalties. Conclusion The analysis indicates that Naudapay Limited d/b/a Noda.live may be operating in a precarious legal environment due to its connections with unlicensed online casinos and the use of the domain https://bankstransfer.com for payment processing. While Noda.live is a regulated payment institution in the UK, its involvement with operators that lack the necessary licenses to operate in Europe presents significant compliance risks. It is crucial for Noda.live to reassess its partnerships and transaction processing practices to ensure adherence to regulatory requirements and mitigate potential legal repercussions. Key Data Noda Trading nameNodaNoda.liveBusiness activityFCA-authorized payment institutionRelated domainshttps://noda.livehttps://uk.noda.livehttps://bankstransfer.comLegal entityNaudapay LimitedJurisdictionUnited KingdomAuthorizationFCA-regulated payment institution with Ref No. 832969Related individualsIrina Konstantinova Anastasija Tenca Lasna KuhtarskaPayRate42 ratingGreen Compliance, Green Risk (profile) Share Information If you have any information about Noda, its customers and partners, please let us know via our whistleblowing system Whistle42. Share Information with FinTelegram CategoriesIllegal gambling Illegal Payment Services tickerTagsAnastasija TencaIrina KonstantinovaLasna KuhtarskaNaudapayNodaNoda.live

In a worthwhile reading essay for The International Banker, Ted Datta, Senior Director of Financial Crime Industry Practice at Moody’s, emphasizes the importance of Ultimate Beneficial Owner (UBO) compliance, particularly noting its frequent neglect by FinTech companies. This oversight is a key reason many FinTechs inadvertently become facilitators for illegal activities, including online casinos. The Importance of UBO Compliance In today’s interconnected business landscape, transparency is vital. An Ultimate Beneficial Owner (UBO) is an entity that controls and influences a company. While most beneficial owners are legitimate, some conceal their identities to engage in illegal activities such as money laundering, human trafficking, and fraud. Complex ownership structures are often exploited to hide these illicit activities, integrating illegal funds into legitimate financial systems. Regulatory Landscape and Challenges Regulations around UBO identification are evolving to combat financial crimes and protect the privacy of beneficial owners. The Financial Action Task Force (FATF) has amended its Recommendation 24 to require nations to ensure accurate, up-to-date information on beneficial owners. Similarly, the EU’s sixth Anti-Money Laundering Directive mandates precise information maintenance and introduces stricter penalties for non-compliance. These regulations demand robust due diligence and continuous monitoring from businesses. However, the lack of uniformity across jurisdictions poses a significant challenge for multinational corporations, leading to increased compliance costs and complexities. The Risks of Non-Compliance Inadequate UBO checks can lead to severe financial and reputational damage. A notable example is the scandal involving a major European bank’s Estonian branch, which failed to conduct comprehensive checks on high-risk customers, resulting in $200 billion in suspicious transactions. The bank’s CEO resigned, and the institution faced substantial fines and a halved share value. Best Practices for UBO Compliance To navigate the complexities of UBO compliance, businesses should adopt several best practices: Risk-Based Approach: Focus resources on high-risk clients and transactions to enhance due diligence. Regular Audits: Conduct routine reviews and updates of compliance processes to keep pace with regulatory changes. Technological Solutions: Utilize data collection automation, real-time monitoring, and AI to improve the efficiency and accuracy of compliance processes. Moody’s research highlights the importance of managing data effectively. Issues such as data silos, high costs, and inaccuracies can hinder compliance efforts. Technological tools, including machine learning and AI, can uncover hidden risks and relationships, facilitating a more comprehensive and efficient compliance process. Conclusion As regulations become more stringent, FinTechs and other businesses must prioritize UBO compliance to avoid becoming conduits for illicit activities. By leveraging advanced technologies and adopting robust compliance strategies, companies can protect themselves from financial and reputational risks while contributing to the integrity of the global financial system. Report Compliance Issues to FinTelegram CategoriesComplianceTagsTed Datta

A UK hacker, Elliot Gunton, has been sentenced to three and a half years in prison for orchestrating a phishing scam that compromised over 500 Coinbase accounts, resulting in the theft of more than $900,000. Gunton, who was just 17 and 18 years old during the 2018-2019 scam, directed victims to dummy websites to capture their login details. Gunton pleaded guilty to conspiracy to commit fraud outside the UK and money laundering. Judge Alice Robinson of the Norwich Crown Court described the crime as “highly sophisticated,” involving significant planning and technical expertise. This isn’t Gunton’s first run-in with the law. In 2019, he received a 20-month prison sentence for stealing TalkTalk customer data for cryptocurrency but avoided jail by completing a 12-month rehabilitation order. He was also ordered to repay £407,359 ($524,700) for hacking high-profile Instagram accounts. Report Cybercrime If you have any information about CYbercrime activities, please report them to FinTelegram. You can use our whistleblower system, Whistle42, for this purpose. Report Cybercrime Activities to FinTelegram CategoriesCourt CasesTagsAlice RobinsonElliot Gunton Coinbase

Zet Casino is one of the former brands of the bankrupt operator Rabidi N.V. It’s currently operated by Liernin Enterprises Ltd, registered in the Marshall Islands, and the payment agent Mirata Services Ltd, registered in Cyprus. Zet Casino has an offshore license in the Philippines, which is not accepted in the EEA regions. Nevertheless, players from the EEA regions and the UK are accepted without any problems and can make deposits. Here is our review. Background Information Rabidi operated several dozen online casinos under a license in Curacao until its bankruptcy in 2023. This license was revoked due to the bankruptcy, as reported by FinTelegram. Since then, the former Rabidi brands, such as Zet Casino, have been operated by other legal entities or anonymously, almost always using a payment agent in Cyprus. The operators do not have licenses for activities in Europe and other jurisdictions. In the case of Zet Casino, we discovered that the main domain ZetCasino.com no longer work but are redirected to other domains, such as https://zetcasino8.com. The related brand and website ZetSpins (ZetSpins.com) is offline with an 404 error message. The main site ZetCasino.com has had more than 130,000 visitors in the last 28 days before our review on July 25, 2024 with more than 70% coming from Canada. The rest of the top 5 visitor countries are the U.S., Italy, Germany and the Philippines. On Trustpilot, Zet Casino receives a 1.5-star rating with a “Bad” trust level out of 277 reviews. This is a scam-level rating. Facilitating Payment Processors Players can make deposits via credit/debit cards, e-wallets, e-vouchers, and cryptos. As a cashier and payment gateway, we have once again discovered PaymentIQ from Worldline, which is widely used in the segment of illegally operating online casinos. Deposits via bank transfer are currently not offered by default. However, players can withdraw their balance via bank transfer, whereby Noda is integrated as a payment processor via the separately set up domain Bankstransfer.com. As a payment processor for cryptocurrencies, we have discovered CryptoPay, which allows customers to make their crypto deposits and withdrawals. MoonPay is also integrated for crypto transactions. It allows Zet Casino players to buy cryptocurrencies with credit/debit cards. After a successful purchase, these cryptocurrencies are transferred directly to Zet Casino, increasing the player’s balance. Compliance Check Zet Casino has an offshore gaming license from the Philippine Amusement & Gaming Corporation for the domain ZetCasino.com. However, this offshore license does not entitle Zet Casino to operate in Europe or other jurisdictions. In our reviews in July 2024, however, it was no problem to register with Zet Casino as an EEA and UK resident and to make deposits via the integrated payment facilitators without a KYC check. Zet Casino is also active in North America, as an analysis of website traffic shows. The lack of regulatory approval and the absence of KYC undoubtedly result in a Red Compliance Listing. The participating payment facilitators should ask themselves how they can justify the acceptance of Zet Casion and its Cypriot payment agent Mirate Services as a merchant. Key Data Zet Casino Trading nameZet CasinoActivityOnline gambling and casinoDomainshttps://zetspins.comhttps://zetcasino1.com … https://zetcasino10.comLegal entitiesLiernin Enterprises LtdMirata Services LtdRelated entitiesRabidi N.V.Tilaros LimitedTranello LimitedJurisdictionsMarshall Islands, CyprusAuthorizationsPHILIPPINE AMUSEMENT & GAMING CORPORATION OFFSHORE GAMING LICENSEPayment processorsCashlib, MiFinity, Worldline (PaymentIQ)Noda (Bankstransfer.com), Jeton, Rapid,Neteller, Paysafe Card, Skrill, ZimplerCryptoPayRelated individualsnot disclosedTrustpilot1.5-star rating with “Average” trust levelCompliance ratingRed Call to Action Zet Casino is just one of dozens of former brands of the collapsed Rabidi Group operated by new operators without valid licenses in Europe and other regulatory regimes. We would like to know more about Zet Casino, its operators, and its facilitators. If you have any information in this regard, please let us know via our whistleblowing system, Whistle42. Report Information About Spinbookie and B90 Holdings CategoriesIllegal gambling Illegal Payment Services Red Compliance tickerTagsCryptoPayLiernin EnterprisesMirata ServicesNetellerNodaPaymentIQPaysafeRabidiRabidi GroupSkrillTilarosTranelloWorldlineZimpler

The fight against money laundering is high on the international community’s agenda. In a groundbreaking initiative, seven major banks, including Barclays, Lloyds, and NatWest, are sharing customer data with the UK’s National Crime Agency (NCA) to combat organized crime, fraud, and money laundering. This project is the largest of its kind globally and aims to curb the flow of illicit funds through Britain, Reuters reports. Key Highlights Participating Banks: Barclays, Lloyds, NatWest, Santander, TSB, Metro Bank, and Starling Bank. Objective: To tackle economic crime, which costs the UK economy up to £350 billion ($452 billion) annually. Launch: The project went live in May and has already identified eight new crime networks. Adrian Searle, director of the NCA’s National Economic Crime Centre, emphasized the project’s goal: “To bring together the collective efforts of law enforcement, government, regulators, and the private sector to combat economic crime.” The project has led to the identification of three crime networks now under further investigation and has provided new intelligence for ten major NCA investigations. Data Sharing and Protection Under the program, bank employees are seconded to the NCA, forming a team of 15-20 intelligence officers, data scientists, and analysts. This team investigates suspicious money movements while ensuring legitimate customers are not affected. Data sharing is conducted under strict conditions to comply with European data protection and privacy laws. The banks involved have legal frameworks allowing them to share customer information without prior notification to fulfill their legal obligations in detecting and preventing financial crime. The UK Financial Conduct Authority (FCA) is monitoring the project, which has increased its acceptance among participating banks. Report Money Laundering Activities to FinTelegram CategoriesFinTelegram Law Enforcement Money LaunderingTagsAdrian SearleBarclaysLloydsNatWest

The U.S. Securities and Exchange Commission (SEC) has announced a significant award of more than $37 million to a whistleblower whose efforts were instrumental in a successful enforcement action. The whistleblower initially reported the misconduct internally, prompting their employer to launch an investigation and eventually self-report the findings to the SEC. This self-reporting led the SEC to open its own investigation. According to the SEC press release, the whistleblower’s continuous and comprehensive assistance was crucial for the SEC staff to fully understand the scope and details of the misconduct. “Today’s whistleblower learned of misconduct and made the difficult decision to report their concerns. This individual, who was retaliated against for their whistleblowing activity, played a crucial role in the ultimate success of the enforcement proceeding,” stated Creola Kelly, Chief of the SEC’s Office of the Whistleblower. The SEC’s whistleblower program is funded entirely through monetary sanctions paid by securities law violators and aims to protect investors by encouraging the reporting of violations. Whistleblowers can receive between 10% and 30% of the monetary sanctions collected when they provide the SEC with original, timely, and credible information that leads to enforcement actions resulting in sanctions exceeding $1 million. This substantial award highlights the SEC’s commitment to supporting and protecting individuals who come forward with critical information about securities violations. Report Financial Wrongdoing to FinTelegram CategoriesSEC WhistleblowerTagsCreola Kelly

While already in prison, the U.S. Commodity Futures Trading Commission (CFTC) has announced that the U.S. District Court for the Western District of Texas has ordered Abner Alejandro Tinoco and his company, Kikit & Mess Investments, LLC, to pay more than $31 million in monetary relief. The court’s order, dated July 9, mandates restitution, disgorgement, and civil penalties for their involvement in a forex and crypto Ponzi scheme. Key Judgments The court’s order requires Abner Alejandro Tinoco and Kikit & Mess, both formerly based in El Paso, Texas, to: Pay $6,203,792.18 in restitution to 199 defrauded victims. Disgorge $6,257,904.89, with a dollar-for-dollar credit for any restitution payments made. Pay a $18,773,714 civil monetary penalty, which is three times the amount of their unlawful gains. Fraudulent Activities The fraudulent activities by Tinoco and Kikit & Mess were initially addressed on March 25, 2022, when the court issued a consent order of permanent injunction. This order prohibited them from future violations of the Commodity Exchange Act (CEA) and CFTC regulations, banned them from trading in CFTC-regulated markets, and barred them from CFTC registration. The CFTC’s investigation revealed that from September 2020, Tinoco and his firm operated a fraudulent scheme, accepting over $7.2 million in investment funds from clients. Instead of investing these funds as promised, they used the money to pay bogus “investment profits” to other clients, akin to a Ponzi scheme. The funds were diverted to cover Tinoco’s personal expenses, including luxury travel, real estate purchases, and high-end automobiles. Criminal Proceedings Parallel to the CFTC’s action, the Department of Justice charged Tinoco with five counts of wire fraud on November 29, 2022, based on similar allegations. Tinoco pled guilty to these charges on February 29 and received an 84-month prison sentence, followed by three years of supervised release. He was also ordered to pay $9,023,695.77 in restitution. Tinoco is currently serving his sentence at the Federal Correctional Institution in Safford, Arizona. Report Cybercrime Activities to FinTelegram CategoriesCFTC Crypto Schemes PonziTagsAbner Alejandro TinocoKikit & Mess Investments

In an embattled decision, the U.S. Commodity Futures Trading Commission (CFTC) has imposed a $55 million fine on Trafigura Trading LLC, a Houston-based subsidiary of the global commodities trader Trafigura PTE, Ltd. This marks the CFTC’s first-ever enforcement action under its whistleblower protection rule, implemented seven years ago. The settlement, announced on June 17, 2024, addresses multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations by Trafigura Trading LLC. The Case Explained A significant aspect of this case is the CFTC’s allegation that Trafigura required employees to sign and requested former employees to sign Non-Disclosure Agreements (NDAs) that effectively prevented them from communicating with the CFTC, law enforcement, and other regulators. These restrictive covenants reportedly hindered the CFTC’s investigation. “This is the first CFTC action charging a company under regulations designed to prevent interference with whistleblower communications,” stated Brian Young, director of the CFTC’s Whistleblower Office. “This groundbreaking action demonstrates the CFTC’s commitment to protecting potential whistleblowers and puts the market on notice that the CFTC will not tolerate contractual arrangements that could impede communication by potential witnesses.“ The CFTC’s whistleblower rule, Regulation 165.19(b), prohibits companies from taking actions that impede individuals from directly communicating with the Commission about potential violations of the CEA. The rule was violated when Trafigura‘s NDAs, signed between July 31, 2017, and 2020, lacked specific exceptions that would allow employees to share information with regulatory bodies. The company argued that it had voluntarily taken significant remedial steps to enhance its compliance program, including implementing new risk-based policies and training employees. Two CFTC Commissioners Disagree However, two CFTC commissioners, Summer Mersinger and Caroline Pham, expressed disagreement with the enforcement. They argued that the company had not explicitly “acted” to impede reporting and that the whistleblower rules do not mandate specific language in employment agreements for compliance. This enforcement action by the CFTC aligns with similar measures by other federal regulators, such as the U.S. Department of Justice and the Securities Exchange Commission (SEC), which have been actively encouraging whistleblower activity. The SEC, for instance, fined a company in 2024 for using NDAs that allegedly impeded whistleblower activity. Given this precedent, regulated employers should review their employment and separation agreements to ensure they do not inadvertently restrict employees from participating in whistleblower programs. The outcome of the upcoming presidential election could also influence the future of federal whistleblower programs, potentially altering enforcement priorities and approaches. Report Whistleblower Incidents to FinTelegram CategoriesCFTC WhistleblowerTagsBrian YoungCaroline PhamSummer MersingerTrafiguraTrafigura Trading

A recent report by TRM Labs reveals that Russian-speaking ransomware groups were responsible for the majority of crypto-ransomware attacks in 2023, highlighting the extensive use of cryptocurrency for illicit activities in Russia. According to the report, Russian-speaking ransomware groups accounted for at least 69% of all crypto proceeds from ransomware in 2023, totaling over $500 million. Ransomware, a type of malware that blocks user access to devices until a ransom is paid, saw significant activity from groups such as Lockbit and ALPHV/BlackCat, the two largest operators. In a notable development, the U.K. National Crime Agency announced in February that it had successfully compromised Lockbit’s operations, dealing a substantial blow to their criminal enterprise. The report also noted that Russian-language darknet markets were responsible for 95% of all crypto-denominated illicit drug sales on the dark web in 2023. This underscores the extensive use of cryptocurrency in facilitating illegal drug transactions within these markets. In addition, inflows to the Russia-based crypto exchange Garantex accounted for 82% of the crypto volumes linked to sanctioned entities worldwide. This occurred despite global sanctions imposed on Russia due to the ongoing war in Ukraine. The report highlighted that entities in Russia have increasingly turned to cryptocurrency to circumvent these sanctions. The U.S. Office of Foreign Assets Control (OFAC) has blacklisted several bitcoin and ether addresses associated with sanctions evasion, and in 2022, U.S. federal prosecutors accused five Russian nationals of laundering millions of dollars in crypto. “Russian-speaking threat actors are unique in the breadth of their malign activity,” the report stated, emphasizing the extensive range of illicit activities carried out by these groups. Despite the dominance of Russian-speaking groups in ransomware and darknet markets, North Korea remains a significant player in the global cybercrime landscape. The report noted that North Korean hackers were responsible for nearly $1 billion in cryptocurrency theft in 2023, maintaining their position as a leading cybercrime threat. Report Ransomware Activities to FinTelegram CategoriesRansomware tickerTagsTRM LAbs

A federal grand jury in the U.S. has indicted Andrew Left, a prominent activist short seller, on multiple counts of securities fraud for allegedly orchestrating a long-running market manipulation scheme that netted at least $16 million in profits. Left, 54, is a well-known U.S. securities analyst and trader. Left frequently appeared as a commentator on major cable news channels such as CNBC, Fox Business, and Bloomberg Television. The SEC also filed charges against Left. The U.S. Securities and Exchange Commission (SEC) charges Andrew Left and his firm, Citron Capital LLC, for engaging in a $20 million multi-year scheme to defraud followers by publishing false and misleading statements regarding his supposed stock trading recommendations. Under the Citron Research banner, Left published investment recommendations online, leveraging a website and social media presence on X (formerly Twitter). The indictment alleges that Left exploited his influence to manipulate stock prices, often targeting companies popular with retail investors. By publishing sensationalized and exaggerated commentary, Left purportedly drove stock prices in directions that benefited his trading positions. He allegedly took long or short positions in stocks prior to his public recommendations and quickly closed these positions to capitalize on the short-term market movements his commentary induced. Furthermore, Left is accused of using his advance knowledge of market-moving events to profit through short-dated options contracts. He supposedly placed limit orders to close his positions at favorable prices, often contrary to the public target prices he recommended. To conceal his financial conflicts of interest, Left allegedly fabricated invoices, wired payments through third parties, and made false statements about Citron’s financial relationships with hedge funds. He also allegedly lied to federal investigators about his coordination with hedge funds. Left’s influence grew through his frequent media appearances and social media activity, which bolstered his credibility. However, the indictment claims he misrepresented his trading positions during these appearances to further his scheme. For instance, he allegedly misled the public about his holdings after criticizing a company on CNBC’s “Fast Money.” Andrew Left faces one count of engaging in a securities fraud scheme, 17 counts of securities fraud, and one count of making false statements to federal investigators. If convicted, he could face a maximum penalty of 25 years in prison for the securities fraud scheme count, 20 years for each securities fraud count, and five years for the false statements count. Report Financial Crime to FinTelegram CategoriesCourt Cases Influencers Securities Manipulation

A few days ago, we published a complaint from a customer of the illegally operating Rolletto online casino. This customer has stated that Rolletto is operating in the UK without regulatory permission and has collected unauthorized payments from their bank accounts at Monzo, HSBC and Barclays via the payment facilitator PayOp. We took a look at Rolletto and the OnyxioN network behind it. Here is our review but we’d like to know more. Short OnyxioN Narrative OnyxioN B.V. was founded in Curaçao in 2019. However, the company operated its casino websites via the subsidiary OnyxioN Development Limited in Cyprus, which was founded in 2020. Also in 2020, OnyxioN Malta Limited was established in Malta, which received a license from the Maltese MGA and operates the 31 Bet Casinos via this MGA license. In 2022, OnyxioN B.V. in Curarcao became Santeda International B.V. and OnyxioN Development Limited in Cyprus became Santeda International Limited. The Maltese OnyxioN continues to operate under the original name. The Santeda International Group operates the three online casinos – Mystake, Locasbet and Rolletto. Santeda International does not currently have a license in Curacao or any other regulatory permission to operate its online casinos. The beneficial owners behind OnyxioN Group are Tornike Tvauri and Deniz Yildirim, who both live in Hamburg, Germany. The former is also the CEO of Upgaming, an iGaming solutions provider offering exclusive products such as sports betting, e-sports, live casino, slots and table games. Read our reports about the bankrupt Rabidi group. Website Traffic Analysis When analyzing website traffic for the Rolletto websites, we found the following interesting points: Since June 2024, more traffic has been generated via the Rolletto.cc domain, whereas traffic on the Rolletto.com domain has declined massively. This indicates a systematic redirection of traffic. In June 2024, more than 3.1 million visitors visited the website with the domain Rolletto.cc. Almost all website traffic in July 2024 was generated by visitors from the UK. In previous months, Spanish visitors were also frequent visitors to the site. Other payment processors are also associated with the new Rolletto.cc domain. For example, PayOp no longer appears as a payment processor at Rolletto.cc. Like many other online casino operators, Rolletto uses a variety of numbered domains, such as https://rolletto256.com. Payment Facilitators’ Involvement Billing described “Onysion” for the Rolletto casino Onyxion is specified as the billing descriptor on the Rolletto payment page. This company is registered in Malta and has a license from MGA. It operates the 31 Bet online casinos. Apparently, Onyxion acts as a payment agent for the unauthorized and illegal Santeder International casinos. Compliance Check We do not know why the OnyxioN Group has partly changed its name to Santeder International. However, we do know that the casinos operated by this group are not authorized to offer their online casino and gambling activities in the UK, EEA countries or other jurisdictions. In our reviews in mid-July 2024, we were able to register as UK and EEA residents at the group’s casinos without any problems and make deposits via credit/debit card, e-wallets and cryptocurrencies without KYC. The latter even in theoretically unlimited amounts. The Santeder International Group receives a red flag for not having a regulatory permit. OnyxioN Malta Limited has an MGA license for the operation of its 13 bet casinos. We do not know whether and how the MGA-regulated entity will be used to facilitate the illicit casinos of Santeder International. OnyxioN Key Data Trading namesRollettoMystakeLocasbet31 betBusiness activityOnline casino and gambling operatorsStatusActiveDomainshttps://rolletto.comhttps://rolletto.cchttps://rolletto256.comhttps://rolletto257.comhttps://rolletto259.comhttps://rolletto262.com and morehttps://mystake.comhttps://locasbet.comhttps://31bet.comhttps://31.casinohttps://31bet.coLegal entitySanteda International B.V.Santeda International LimitedRelated entitiesOnyxioN Malta LtdUpgaming (https://upgaming.com)IGA Group (representative)JurisdictionsCuracao, CyprusAuthorizationMGA license for OnyxioN Malta Limited pending Curacao applicationTrustpilot3.0 star rating with an “Average” trust levelRelated individualsTornike Tvauri (LinkedIn)Deniz Yildirim (Northdata)Payment agentOnyxion Malta LtdPayment optionsCredit/debit card, e-wallets, cryptoPayment GatewayOmnoPayment processorsClear Junction Ltd, Jeton, PayOpCompliance ratingRed Share Information We encourage anyone with knowledge about OnyxioN and Santeda International, its operations, its facilitators, or any related activities to come forward. Your information could be pivotal in understanding and exposing potentially illegal or unethical practices within this organization. Your contribution is vital in holding the key individuals accountable and safeguarding the integrity of online gaming and financial transactions. Share Information With FinTelegram CategoriesIllegal gambling Illegal Payment Services Red Compliance tickerTags31 betClear JunctionDeniz YildirimJetonLocasbetMyStakeOnyxioN MaltaPayOpRollettoSanteda InternationalTornike Tvauri

In a surprising leadership change, Swiss private bank Julius Bär announced the appointment of Stefan Bollinger, a partner at Goldman Sachs, as its new CEO. Bollinger will take over the traditional Zurich-based private bank no later than February 1, 2025, following a challenging period marked by substantial financial losses and executive departures. According to Google Trends, the name Stefan Bollinger was one of the most frequently searched terms on Tuesday. Stefan Bollinger’s Appointment Stefan Bollinger, currently Co-Head of Private Wealth Management EMEA at Goldman Sachs in London, will succeed Philipp Rickenbacher, who stepped down earlier this year. Bollinger’s extensive background in banking and financial markets, spanning three decades and including roles in trading, structuring, sales, treasury, and wealth management, positions him as a strong leader for Julius Bär. Under his leadership, the PWM EMEA division at Goldman Sachs more than doubled its managed assets over the past five years. The Signa Group Debacle Julius Bär has recently been under scrutiny for its dealings with the disgraced Austrian real estate investor Rene Benko and his Signa Group. The bank suffered a staggering CHF 586 million ($678 million) loss on loans to Signa, which declared bankruptcy in November 2023. This loss significantly impacted Julius Bär’s financial health, causing net profits to plummet by 52% year-on-year, to CHF 454 million. The financial blow resulted in the resignation of CEO Philipp Rickenbacher, who accepted responsibility for the bank’s exposure to Signa. Moreover, several board members involved in the private credit business had their 2023 bonuses stripped, and the chair of the risk and governance committee announced their resignation. Bollinger’s appointment is expected to steer Julius Bär towards stability and growth. His international experience, having worked in financial hubs such as Hong Kong, London, Luxembourg, New York, and Zurich, will be invaluable as the bank seeks to rebuild its reputation and financial strength. Share Information with FinTelegram CategoriesPeople RadarTagsGoldman SachsJulius BaerPhlipp RickenbacherRene BenkoSignaSigna GroupStefan Bollinger

The UK regulators did not make it easy for Revolut, founded in 2015 by Nik Storonsky and Vlad Yatsenko, then Russian citizens. The UK’s most valuable fintech firm has finally secured a UK banking license with certain restrictions, following a three-year application process. This milestone will enable Revolut to hold customer deposits and offer own-branded loans, including mortgages, setting the stage for its eventual stock market listing. A Milestone Achievement Revolut‘s tentative approval from the Bank of England marks the beginning of its mobilization stage, where it will build up its banking operations. This comes after the London-headquartered firm submitted its application in 2021. The prolonged approval process involved addressing accounting issues, regulatory breaches within the EU, and reputational concerns, including allegations of an aggressive corporate culture. In 2016, the Financial Conduct Authority (FCA) investigated Revolut after a whistleblower alleged inadequate money-laundering checks and failure to properly flag suspect payments. The investigation concluded in 2017. Since then, Revolut has asserted full compliance with anti-money laundering and terrorist financing regulations, and it has taken steps to improve its working culture. The Cyberfinance Rating Agency PayRate42 has Revolut on its Green Compliance and Green Risk lists. Go to the Revolut profile on PayRate42. Consumer Concerns and Regulatory Scrutiny Consumer advocacy group Which? raised concerns about Revolut‘s approach to reimbursing scam victims. A spokesperson noted that the banking license would benefit customers by protecting their money under the Financial Services Compensation Scheme up to £85,000. However, they urged Revolut to demonstrate a stronger commitment to preventing fraud. Moving Beyond E-Money Status The banking license is a crucial step for Revolut, allowing it to transition from its current status as an e-money institution to a fully-fledged bank. This change will enable Revolut to hold customer deposits directly, paving the way for new revenue streams through own-branded loans and mortgages. However, it will also subject the company to stricter regulations and participation in the Financial Services Compensation Scheme. During the mobilization period, Revolut will address any remaining regulatory issues, such as staffing, IT systems, and governance, to secure its full UK bank status. According to the Bank of England, this process typically takes a few months but should not extend beyond a year. Read our Revolut reports here on FinTelegram. Global Implications and Future Prospects Securing a UK banking license is expected to influence regulatory bodies in other key markets, such as the US, to follow suit. Storonsky expressed pride in reaching this milestone, emphasizing Revolut‘s commitment to becoming the bank of choice for UK customers. The announcement follows Revolut‘s report of record annual profits of £438 million for 2023, a significant turnaround from a £25 million loss the previous year. The profit surge was driven by higher interest rates and ambitious expansion plans that grew its user base by 12 million customers in 2023. Preparing for a Public Offering Revolut has hinted at a forthcoming Initial Public Offering (IPO). In its recent annual report, the company highlighted enhancements in financial controls to meet the standards expected of listed companies. There are also reports of plans to sell a tranche of employee shares to private investors, potentially boosting its valuation to $40 billion (£31 billion). Revolut was last valued at $33 billion in 2021, solidifying its status as the UK’s most valuable fintech company. Share Information with FinTelegram CategoriesCompliance Fintech tickerTagsNik StoronskyRevolutVlad Yatsenko

A customer of the illegally operating online casino Rolletto revealed a series of unauthorized transactions involving their Monzo, HSBC, and Barclays bank accounts. The transactions, which occurred between May 24 and May 25, 2024, were processed by PayOp and directed to Rolletto, a website owned by Santeda International. These transactions highlight serious breaches of anti-money laundering (AML) laws. FinTelegram issues an urgent warning against Rolletto. The Rolletto Connections The customer has detailed how significant sums of money were transferred without authorization. These funds were funneled through PayOp to Rolletto, with the transactions ending up in a UK bank account with the following details: Sort Code: 04-13-07 Account Number: 29904109 Bank: Clear Junction LTD (UK) Clear Junction LTD is a UK-based company regulated by the Financial Conduct Authority (FCA) as an E-Money Institution. Rolletto does not appear to hold a license from the UK Gambling Commission to operate within the UK. According to section 33 of the Gambling Act, offering gambling services to UK consumers without a license is a criminal offense. On its website, it is stated that the Rolletto operator Santeda International B.V. “is pending application by the GCB. Represented by https://igagroup.com. Illegal Targeting and Misleading Practices Rolletto is accused of targeting UK consumers registered with GamStop, a self-exclusion scheme designed to protect vulnerable individuals from gambling-related harm. By miscoding Visa and Mastercard payments, Rolletto and PayOp allegedly bypass UK banking blocks on gambling transactions. This practice not only contravenes the purpose of GamStop but also constitutes a deceptive and fraudulent activity. The transactions were processed using false merchant codes, a severe offense under the Merchant Category Code (MCC) system. Misleading merchant information obscures the true nature of the transactions, complicating the audit trail and providing anonymity for the illegal activities. According to the Rolletto victim, numerous card transactions were made using false merchant codes involving merchants such as Fomiline, Goriwire, Bitsent, Wintermdse, and Arcomet. These transactions suggest a deliberate effort to conceal the true nature of the payments. Violation of PayOp’s Terms and Conditions The actions of Rolletto and PayOp directly contravene several clauses in PayOp’s terms and conditions, including: Account Registration: Prohibits payments to or from entities offering illegal gambling services. Warranties and Representations: Requires merchants to have all necessary authorizations and licenses. Fraudulent Activity: Allows PayOp to annul any suspicious or fraudulent transactions and report them to authorities. Legal and Regulatory Implications The victim is now seeking to recover all net deposits and intends to pursue legal action if necessary. This includes recovering court fees, legal costs, and statutory interest. The case underscores the urgent need for robust regulatory oversight and enforcement to protect consumers from fraudulent activities. Financial institutions and payment processors’ involvement in facilitating illegal transactions must be thoroughly investigated to uphold the integrity of the financial system and protect vulnerable individuals. Share Information If you have information about similar incidents or if you are an insider with specific information about this case, please let us know via our whistleblower system, Whistle42. Share Information with FinTelegram CategoriesIllegal gambling Illegal Payment ServicesTagsBarclaysHSBCMonzoPayOpRolletto