It was for sure a shock for the international Fintech scene. Especially for those FinTechs which are focused on high-risk and black market segments. This includes adult business with sex trafficking and child abuse but also gambling and, of course, any form of scams. FinTech’s facilitating these businesses with their services live in regulatory nirvana and permanently risk law enforcement actions in the end. In many cases, these FinTechs support money laundering by processing illegal earnings for their clients. The news that the Bank of Lithuania (LB) has revoked the license of the Israeli controlled Bruc Bond UAB (formerly Moneta International UAB) came as a huge shock to these FinTechs.
The strong signal to the markets
Bravo to the Bank of Lithuania. It was a really strong signal from the regulators saying that they would no longer simply accept violations of licenses and laws. This is how Marius Jurgilas, member of the investigative committee in the Bruc Bond case, wanted it understood.
We have applied the strictest sanction that LB has in its sanctions arsenal, responding in principle to the gross and systematic violations of legal acts identified in this institution. Due to the disorder in the institution, the services provided by it exceeded the limits of the license issued to it, a firewall for the prevention of possible money laundering was perforated, and the necessary protection of clients’ funds was lacking. With this resolution, we are sending a clear message to the market and consumers that improper activities of payment institutions will not be tolerated.Marius Jurgilas, a member of the Bank of Lithuania Board in a press release
Eyal Nachum expresses complete surprise
In a statement to the Lithuanian VERSLO ŽINIOS, one of the Israeli beneficial owners of Bruc Bond, Eyal Nachum, said that the revocation came as a complete surprise and shock to him. He could not understand LB’s actions, because Bruc Bond‘s breaches of regulations and laws would have been merely procedural violations. Whatever that means. Nachum showed himself disappointed by Lithuania. Well, we don’t! On the contrary! We, along with many scam and fraud victims, highly appreciate the strong signal set by the Bank of Lithuania!
In fact, FinTelegram has received information from numerous whistleblowers and former partners of Bruc Bond who have provided many details about the worrying business of Eyal Nachum, his Israeli partner Tamir Zoltovski and their FinTech group around Bruc Bond (formerly Moneta International).
FinTelegram has reported about the Moneta International case and was sued in Tel Aviv. According to the lawsuit, the respective FinTelegram reports would only be defamation and lies and “Heaven forbid” [sic] that Moneta International, Eyal Nachum, or Tamir Zoltovski would violate regulation or laws. Well, the LB has determined that Heaven does not hold a protecting hand over them. The LB, in its unusually extensive statement, has described the serious and systematic violation of Bruc Bond and thus proved all FinTelegram reports right.
Refund the money!
The regulator also ordered Bruc Bond to repay the funds to its clients. Unfortunately, these customers are not the aggrieved retail investors of scams, but the operators of the scams. These have registered as so-called “merchants”.
The LB requested and received the report from FinTelegram and the CyberProfilers several weeks ago. We understood that LB was able to confirm the connections to scams uncovered in our report.
We will continue the report on Bruc Bond soon! Stay tuned!