Red Compliance Rating For The Duronga And BDSwiss Bond!

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German entrepreneur Jan Malkus is the beneficial owner behind CySEC-regulated BDSwiss, which has recently faced massive regulatory difficulties in various jurisdictions. Malkus controls the BDSwiss Group through Cyprus-based Duronga Holdings Ltd. Currently, Duronga is offering a bond that offers investors a repayment of 210% of the capital invested. We have put the bond on our Red Compliance List.

Jan Malkus, Duronga Holdings & BDSwiss

Duronga Holdings Ltd and its subsidiary, BDSwiss Group, are controlled by German entrepreneur Jan Malkus.

We have audited documents showing that the Swiss-based BDSwiss AG, the parent company of CySEC-regulated BDSwiss Holding Ltd and other entities of the BDSwiss Group, wanted to conduct an IPO in 2021. But then came the problems. Among other things, the UK FCA banned BDSwiss from the UK for systematically violating regulatory requirements.

This FCA enforcement action was a major setback and may have ultimately brought down the IPO. After that, the management team was swapped.

The Duronga Bond

Bond offering of Duronga as the parent company of BDSwiss — Duronga Bond terms

Apparently, Malkus’ Duronga is now seeking money from investors via a bond. In doing so, Duronga Ltd promises a payback of 210% of the invested capital after three years. The Duronga Ltd Secured Bond Offering issued by ABS Securitisation SA Luxembourg is represented as a “unique investment option backed by the strong assets and growth potential of Duronga Ltd, a dynamic player in the financial technology (Fintech) sector.“

The bond terms indicate that a listing of Duronga or BDSwiss will possibly happen. Then, the bond can also be repaid with the listed shares of these companies: “Under certain conditions, bondholders may also benefit from significant capital gains through share redemptions and potential listings of Duronga Ltd and/or BDSwiss AG.“

Below are the terms and conditions.

Purpose: The bond offering is introduced as a unique investment opportunity for qualified investors within the European Economic Area (EEA).
Issuer: The bond is issued by ABS Securitisation SA Luxembourg on behalf of Duronga Ltd, a prominent player in the Fintech sector.
About Duronga Ltd: Duronga Ltd is an investment company specializing in Fintech. They leverage emerging technologies like AI and blockchain. A significant asset under Duronga Ltd is BDSwiss AG, a global trading platform with over a million clients, indicating strong growth prospects.
Key Features:
- Security: The bonds are asset-backed, secured by a pledge against Duronga Ltd’s assets, ensuring a safety layer for investors.
- Returns: Investors are promised a return of 210% of their initial investment after a 3-year period, translating to a 28.06% annual compounded internal rate of return.
- Capital Gains: There’s potential for bondholders to realize capital gains through share redemptions and possible listings of Duronga Ltd or BDSwiss AG.
- Fees: Duronga Ltd will absorb certain fees, such as sales, administration, and paying agent fees, ensuring investors reap maximum benefits.
Investment Appeal: Duronga Ltd positions itself as a leader in Fintech innovation. Their commitment to transparency, asset security, and promising returns makes this bond offering appealing for investors desiring both stability and growth.
Participation Details: Interested investors can get more details or invest by contacting Duronga’s Investor Relations team or directly purchasing the bond with the ISIN CH1108675377. The bond will be booked directly into the investor’s depository account. The minimum subscription amount is set at EUR 100,000.

Read our reports on Duronga and BDSwiss.

Conclusion & Compliance Rating

FinTelegram has been following the activities of BDSwiss and Jan Malkus for several years. We have reviewed the bond offering and its environment. We advise investors against the Duronga Bond and placed it on our Red Compliance List. Here are the reasons why:

Regulatory Scrutiny: We have highlighted the regulatory lapses of BDSwiss in a number of reports, for which they were ultimately banned from the UK market by the FCA. As recently as July 2023, BDSwiss received a fine of €100,000 from CySEC for their offshore activities.
Opaque Group: The entire Duronga Group is not transparent, in our opinion. Among others, the portfolio of the Duronga Group includes the Swiss Finoroo AG without providing any details. There again, Jan Malkus sits on the board. At the time of our review on September 23, 2023, the website www.finoroo.com was offline. Also in the portfolio, in addition to BDSwiss and Finoroo, is the Cypriot crypto company DXOne, which issued a crypto token in 2020 but which has experienced unfriendly development.
Negative Investor Feedback: We have also received very negative feedback from Duranga investors. This includes problems with promised refunds and other promises not kept.
Missing Information: Finally, we note that the website on which the bond is offered does not provide any details about the issuer. It is not clear whether it is the Cypriot Duronga Holdings Ltd or another Duronga Ltd.