In a shocking turn of events, the Supreme Administrative Court of Lithuania (SACL) ruled that ABC Projektai, formerly Bruc Bond and Moneta International, can regain its e-money license. This decision raises serious questions, given the firm’s notorious involvement as a payment processor for the fraudulent binary options industry. Bruc Bond, established by the Israelis Eyal Nachum and Tamir Zoltovsky, was infamous for facilitating vast binary options fraud schemes.
Background: A Tarnished Legacy
In April 2020, the Bank of Lithuania revoked the license of Bruc Bond UAB (formerly Moneta International UAB) for non-compliance with regulations on money laundering (ML) and terrorist financing (TF), inadequate safeguarding of client funds, and providing false information to regulators.
This Lithuanian institution, founded by Israelis Eyal Nachum and Tamir Zoltovsky, has been heavily implicated in binary options fraud, facilitating money laundering operations for fraudsters—a fact FinTelegram has extensively documented.
Eyal Nachum, who is still the CEO of this Lithuanian entity, and his partner Tamir Zoltovsky have a checkered history. They previously operated in the binary options fraud scene through their Israel-registered company Payobin and a network of offshore entities, including SeeddPay Ltd in the Marshall Islands and Hermes Solution in Montenegro. Since 2016, they have also utilized their licensed Lithuanian companies, Bruc Bond UAB and International Fintech UAB, for these dubious activities.
Read our Bruc Bond reports here.
A Controversial Judicial Decision
The Supreme Administrative Court of Lithuania (SACL) accepted the company’s appeal and, based on a ruling of the Court of Justice of the European Union (CJEU), overturned the Bank of Lithuania‘s decision, citing a lack of proper justification for the license withdrawal. The court acknowledged ABC Projektai‘s alleged regulatory and compliance efforts, allowing the fintech company to resume operations with a full license effective July 1, 2024.
Justinas Jarusevicius, a legal representative from the Lithuanian law firm MOTIEKA, praised the court’s decision:
“I welcome the conclusions of the Lithuanian Supreme Administrative Court, which condemned the revocation of ABC Projektai’s license. I am very confident that the professional management of ABC Projektai will do everything in its power to continue to contribute to the proper operation of the company.”
The court deemed the original license revocation as harsh and disproportionate, claiming no evidence of willful misconduct by the company. It was stated that ABC Projektai had rectified its past mistakes.
A Dubious Vindication
Despite the court’s ruling, ABC Projektai‘s dark history cannot be ignored. The firm’s operations under Nachum and Zoltovsky systematically aided binary options fraudsters as payment processors and laundered their funds. This full vindication is questionable and deeply troubling, especially considering the extensive evidence of their malpractices.
Moreover, the company’s claim that its activities had no negative consequences for customers or financial institutions seems dubious at best. Many of its clients have been binary options scammers responsible for tens of thousands of victims.
The reinstatement of ABC Projektai’s license is a bewildering and troubling development. As we continue to scrutinize this case, the need for vigilance and transparency in financial regulations becomes ever more apparent. The fight against financial fraud and malpractice is far from over, and your support and information are vital in this ongoing battle.
Call for Information
This decision has garnered support from several EU member states and the European Commission. How can governments and regulatory bodies support a company with such a tarnished history? This perplexing situation demands answers and transparency.
We urge whistleblowers and individuals with insider knowledge about ABC Projektai and its operations to come forward. Your information is crucial in unveiling the truth behind this controversial decision and ensuring accountability in the financial sector.
