VELTYCO’s Entry into Crypto: The VARKASSO Deal Under Scrutiny

Shifting from Binary Options to Blockchain Ventures

Managing a global financial investigation platform often exposes one to both valuable intelligence and hostility. Numerous insiders contribute information about companies and individuals, while others respond with allegations, claiming investigations stem from personal vendettas. However, the facts suggest otherwise—this is simply part of operating in high-stakes industries.

One such case is VELTYCO GROUP PLC, which has attracted attention since early 2018. Historically tied to the binary options market, the company was forced to seek new directions as that business became banned or severely restricted across many countries. In response, VELTYCO embraced the rising trend of cryptocurrencies and blockchain applications. Following its December 2018 announcement of a strategic pivot, the company’s share value surged by nearly 20%—a clear sign of investor excitement during the height of the Bitcoin rally.

VELTYCO’s Strategic Move in Bulgaria: Acquiring VARKASSO

On January 17, 2018, VELTYCO declared the acquisition of a 51% stake in VARKASSO LTD, a Bulgarian firm granted exclusive rights to use 8Crypt, a digital wallet platform centered on blockchain infrastructure.

“Veltyco Group plc… is pleased to announce… the acquisition of a 51% interest in Varkasso, the exclusive licensee of 8Crypt, a crypto wallet solution offering a full range of services for managing digital and fiat assets.”
— VELTYCO Press Release

The 8Crypt system was introduced as an all-in-one platform to manage, exchange, and store both traditional and digital currencies. While the announcement emphasized innovation, it omitted details about VARKASSO’s ownership and background.

In VELTYCO’s audited financials for 2017, this transaction appeared under “subsequent events.” Interestingly, the auditors pointed out weaknesses in identifying transactions involving related parties—an issue that deeper analysis confirms may be more severe than originally acknowledged.

Tracing Ownership: From LENHOFF to BLACKCYAN to VELTYCO

An investigation into Bulgarian corporate records (Bivol) revealed that VARKASSO LTD (ID: 204747934) was established by Uwe LENHOFF on September 1, 2017. Roughly five months later, on February 7, 2018, he transferred his stake to BLACKCYAN LTD, another local company headed by Austrian entrepreneur Joachim KALCHER, who also assumed the role of VARKASSO’s CEO.

Despite the initial acquisition announcement being made in January, the actual sale of 51% of VARKASSO to VELTYCO was only registered in March 2018—after the change in ownership (source).

Transaction Overview

The financial consideration for this transaction was reportedly €300,000, with €200,000 paid in cash and the remainder through 100,000 VELTYCO shares.

“The total consideration for the 51% stake consists of €200,000 in cash and new Ordinary Shares worth €100,000.”
— VELTYCO Press Release

Given that LENHOFF held a board position at VELTYCO at the time, the transaction appears to fall under the category of related party dealings, even if formal documentation between LENHOFF and KALCHER exists. The lack of clarity in the ownership chain opens the door to significant concerns.

KALCHER, Legal Disputes, and the BitRush Connection

Joachim KALCHER—now central to VARKASSO—was previously involved in a legal conflict in Canada. In November 2017, the Superior Court of Justice in Toronto ruled that a software product he developed was the property of the Canadian-listed BITRUSH CORP. KALCHER was ordered to deliver the product in exchange for shares, which he failed to do.

Interestingly, SHELTYCO (VELTYCO’s former name) had once entered into a strategic agreement with BITRUSH to explore blockchain-based payment systems:

“Sheltyco believes BitRush’s ANOON technology, integrated with traditional payment networks, represents a powerful step forward in gaming industry transactions.”
— BITRUSH Press Release

As collaboration plans fell apart, LENHOFF and KALCHER appeared to redirect their focus toward the independent VARKASSO project. However, unresolved legal questions regarding intellectual property rights raise doubts about whether KALCHER or his companies actually own the 8Crypt platform as claimed.

Failure to Disclose Key Details: Accounting and Ethics

Under IFRS standards, related party transactions must be clearly documented due to their potential influence on financial interpretation. In this case, VELTYCO did not disclose multiple material details:

• That VARKASSO was previously owned by a current VELTYCO executive

• The role of BLACKCYAN LTD as a buffer in the transaction

• Legal risks involving the software’s ownership and development

• The structure and timeline of the payment arrangement

Each of these omissions undermines transparency for investors and regulators, particularly for a publicly traded entity.

Broader Impact: Crypto Ventures Beyond VELTYCO

The implications of this acquisition extend beyond the company itself. The 8Crypt technology is also reportedly used in other ventures, such as NEXUS GLOBAL, a crypto investment initiative. As such, the legitimacy and stability of the VARKASSO deal may influence a wider segment of the crypto and online betting ecosystems.

This transaction is therefore not an isolated event but part of a larger network of digital finance operations. Its full impact remains to be seen.