IP Infringement claims
We received the copy of a letter purporting that VELTYCO’s recently acquired 8Crypt technology is violating IP rights and is part of a pending litigation as well as at the center of a money laundering investigation conducted by several EU authorities. Although VELTYCO is a public-listed company, it has not disclosed any details on the 8Crypt transaction, did not disclose any names and gave no background information. Thus, we have to rely on our own investigations.
According to the letter the 8Crypt technology is based on the so-called “One-Time-Pad” encryption technology. The programmer, the Austrian Joachim KALCHER, testified under oath in a court case that he developed the technology for a public listed Canadian company. The court already issued an order that KALCHER has to deliver the technology to the company which he refuses to do. Instead, he obviously sold the technology to public-listed UK-company VELTYCO and allegedly moved to Sofia where the VELTYCO people around Uwe Karsten LENHOFF have their development center.
8Crypt will now be used as a “Multi-Wallet” in the new Crypto-MLM NEXUS GLOBAL, conducted in a sort of joint effort with the VELTYCO group. In our investigations, we found several red flags around the NEXUS GLOBAL scheme. It’s absolutely not clear where NEXUS GLOBAL’s mining facilities are located and if there are mining facilities at all to start with one red flag. We have been informed by a former business partner of Christian Michel SCHEIBENER, one of the co-founders of NEXUS GLOBAL, that they teamed up with Amit Bhardwaj, the arrested founder of the fraudulent Crypto-MLM GainBitcoin to sort of proof the mining capacities. We received a written statement on this subject from the former partner and have no reason to doubt this information.
8Crypt not compliant with legal requirements?
Besides the purported IP infringement, 8Crypt is not a blockchain wallet, not even a blockchain solution as it is falsely labeled by NEXUS GLOBAL and VELTYCO. 8Crypt is a centrally operated and managed payment solution without any public ledger-transparency.
Because of its “One-Time-Pad” encryption, it’s not even possible to reproduce payment transactions. It’s a sort of black hole and in case something happens with the system it’s not possible to trace anything. This lack of transparency violates legal requirements in almost any jurisdiction on this planet. The purpose of commercial transactions systems is to be transparent and to enable the reproduction of transactions. Moreover, payment systems have to be auditable for regulators and authorities. From what we learned, 8Crypt is not auditable as administrators can enable “stealth mode” transactions.
Hence, 8Crypt is probably not compliant with the respective legal frameworks for accounting, tax, and auditing. It is a perfect system for money laundering purposes or illegitimate businesses but definitely not for a financial system or investment scheme. This is maybe the biggest red flag in the NEXUS GLOBAL scheme, a scheme that plans to become the world’s biggest Crypto-MLM.
What we learned from the big fraudulent schemes such as GainBitcoin, Optioment or Pincoin, it’s hard for investors to get their money back. It’s even harder if the system is in a total “privacy mode” without any traces of transactions.
The experts at the Crypto42 Token Investment Summit 2018 in Vienna recently recommended not to invest into ICOs or investment schemes if there is no public transparency. The Blockchain concept is all about public ledgers, transparency, and accountability.