In September 2020, the German regulator BaFin issued a cease and desist order against the broker scams TheCapitalStocks (www.thecapitalstocks.com) and RoyaltyFinance (www.royaltyfinance.io), operated by Estonian Kleinman Group via its company in St. Vincent & the Grenadines. Already in August 2020, the Italian CONSOB warned against these scams. Recently FinTelegram published a report on the Estonian Kleinman Group (read here). Unfortunately, the TheCapitalStocks scam is still online.
At the time of our January report, the scam was facilitated by several payment processors. One was the Russian Piastrix. The Serbian FermenTec Trade DOO (companies register data) processed the scam’s bank transfers and received client-victims deposits to its bank account with the IBAN account LT163500010009281093 at the Lithuanian e-Money Institute Paysera (www.paysera.com), regulated by the Bank of Lithuania under the authorization code LB000251. Boris Kostic, a Montenegrin citizen, serves as a director of FermenTec Trade. He previously worked at collapsed Montenegrin Invest Bank.
The scam is currently still active but only takes more cryptocurrencies. On one of the Bitcoin (BTC) addresses, we detected 10 transactions totaling BTC 0.12 (about $5,200).
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