The Fall of VELTYCO Group: Aftermath of the Binary Options Ban

A Public Company Built on a Hidden Network

VELTYCO GROUP PLC, a company listed on the London Stock Exchange (AIM), positioned itself as a provider of online marketing services for platforms in binary options, forex, sports betting, and online lotteries. However, in reality, the operators of these platforms were often the same individuals who held shares in VELTYCO.

At the center of this network was Uwe Lenhoff, the company’s founder and majority shareholder. He was also the ultimate beneficial owner of several of VELTYCO’s so-called “clients,” including:

• Option888

• LottoPalace

• Altair Entertainment

• Celestial Trading

• Payific Ltd

These companies, closely tied to Lenhoff, were allegedly involved in fraudulent binary options and gambling operations. As countries like Israel, Canada, the U.S., and members of the European Union moved to ban binary options, VELTYCO’s core business model began to unravel.

Struggling With Receivables and Cash Flow

On November 22, 2018, VELTYCO publicly acknowledged it was facing difficulties collecting payments in its financial trading division. The board admitted the situation may require impairment of receivables and intangible assets, reflecting serious liquidity issues.

Breakdown of Outstanding Receivables

All of these companies are controlled by Uwe Lenhoff. Sources close to the company suggest Lenhoff has lost interest in VELTYCO, and the company’s once-promised turnaround following the 2016 reverse takeover has not materialized.

No Vision, No CEO, No Capital

An analysis of VELTYCO’s 2017 Annual Report indicated that the company had little independent activity and functioned largely as a shell for Lenhoff’s wider network. Despite being a public entity, VELTYCO lacked its own sustainable business model.

In October 2018, Melissa Blau, a U.S. citizen, resigned as CEO just six months after her appointment. The company never disclosed her reasons for leaving, but in light of recent revelations, the timing now appears telling.

Auditors had already raised concerns over VELTYCO’s ability to recover its receivables, casting doubt on its ability to continue as a going concern.

The Share Price Collapse

VELTYCO’s share price tells the story of its downfall:

• Nov 12, 2018: GBX 32.5

• Late Nov 2018: GBX ~7

• Loss: Over 60% in days; 87% since January 2018 high (GBX 95)

With limited liquidity and no real investor interest—even from its target sectors in gambling and sports betting—the stock now trades as a penny share. The company has no clear strategy, no marketing budget, and no visible path to recovery after the binary options ban.

Internal Conflicts and Board Failures

Despite everything, Uwe Lenhoff remains officially listed as Head of Business Development at VELTYCO. This creates a glaring conflict of interest: the person responsible for business growth is also the individual behind companies that owe VELTYCO millions.

Governance Issues:

• The board’s Nov 22, 2018 statement fails to disclose this conflict.

• Press releases have misrepresented key facts.

• Leadership, including Chairman Gilles Ohana and CFO Marcel Noordeloos, is accused of misleading shareholders and failing in their fiduciary duties.

At this stage, shareholders would be justified in demanding transparency and accountability from the board.

Summary Table: VELTYCO’s Crisis at a Glance

Conclusion

VELTYCO’s trajectory from a high-potential public company to a collapsing penny stock is a case study in conflicts of interest, regulatory evasion, and governance breakdown. The firm’s dependence on entities owned by its own founder—combined with misleading public statements and a lack of strategy—has brought it to the brink.

As investigations continue and questions mount, the responsibility now lies with VELTYCO’s leadership to answer for the company’s downfall.