SEC Incompetence Allows Crypto Capital Co. to Defraud Investors Out of $20M+ (Pt. 1)

Introduction

This report will start by outlining the Gladius Network ICO and its ties to Crypto Capital Co., Global Trade Solutions and a series of prolific money launderers and criminals, based primarily in Israel.

“Gladius self-reported to the SEC’s Enforcement staff in the summer of 2018, expressed an interest in taking prompt remedial steps, and cooperated with the investigation. The SEC did not impose a penalty because the company self-reported the conduct, agreed to compensate investors, and will register the tokens as a class of securities.”

This report will show how the SEC made an egregious oversight in failing to administer any punitive measures against Gladius Network. This failure essentially enabled the company and, by extension, Crypto Capital Co., in defrauding cryptocurrency users out of well over $12 million in an ICO.

Explaining the Crypto Capital Co. Link

Many in the blockchain space are well aware of the infamous company, ‘Crypto Capital Co’ at this point. For those that are not, this report will be subsequently updated with several comprehensive pieces that break down Crypto Capital Co., and their criminality.

Corporate Governance Records for Crypto Capital AG

Source: https://www.zefix.ch/de/search/entity/list/firm/661270?name=Global%20Trade%20Solutions%20AG&searchType=exact

“Crypto Capital AG, in Zurich, CHE-114.326.916, Aktiengesellschaft (SHAB №45 dated 06.03.2018, Publ. 4092987). Statute change: 17.06.2019. New company: Iridium Capital AG. New company translations: (Iridium Capital SA) (Iridium Capital Inc.). Purpose new: The purpose of the company is the management consulting, management of own assets, proprietary trading, financial consulting, consulting in the field of media, PLI Solutions, address trading, address leasing, as well as the provision of financial market information, information systems. The Company may establish domestic and foreign branches and subsidiaries, and participate in other companies, acquire, encumber, dispose of, and manage real estate, provide financing for its own or third parties, and provide guarantees and guarantees to subsidiaries and third parties.”

Notably, the description of business activities are hardly different than what they were before, when the company was known as Crypto Capital AG.

Source: https://opencorporates.com/companies/ch/910747
  • Crypto Capital AG
  • Iridium Capital Inc.
  • Iridium Capital SA
  • Crypto Capital SA
  • Crypto Capital Inc.

Panama Version of Crypto Capital Co.

The Crypto Capital iteration that is registered in Panama (and associated in the U.S. indictment), was formally dissolved in April 2019, approximately a week before the U.S. DOJ unsealed indictments against both Ravid Yosef and Reginald Fowler:

Source: https://opencorporates.com/events/584554592

Connecting the Panamanian-Based Crypto Capital to the Swiss-Based Crypto Capital

While the criminality of the Panamanian-based Crypto Capital has already been widely reported on by various media outlets, this, in itself, does not necessarily mean that the Swiss-based iteration can be assumed to be the same entity.

Facts That Tie the Two Entities Together

Below are a few facts that establish the connection between the two entities

Major Clue — Banking Information From TransferWise 

During the time that the Panamanian-based Crypto Capital was in operation, they published wire details for their bank account in a few public locations.

Source: https://transferwise.com/us/swift-codes/countries/panama/92738-crypto-capital-corp-sa
Source: https://transferwise.com/us/swift-codes/CYCAPAP1XXX
Source: https://cryptocapitalcorp.blogspot.com/2015/10/crypto-capital-corp-scammers.html

Notably, ‘SA’ is a suffix is used for Panamanian companies, specifically.

Introducing Trilliant AG

Further research into the affairs of Crypto Capital AG leads to a company called, ‘Trilliant AG’.

trilliant.io website homepage

Source: https://finance.yahoo.com/news/promoted-trilliant-plan-crypto-based-152525005.html
Source: https://insidebitcoins.com/news/does-trilliants-fractional-ownership-program-represent-the-evolution-of-an-ico/152767

When analyzing the team more closely, ties to various frauds and scams that have solicited millions of dollars from victims can be seen.

Analyzing Listed Team Members of Trilliant AG

Andrei Zernov

A short Google search for more information about Andrei Zernov brought up the official Bitcoin Wiki entry for the Trilliant AG team.

Here is the actual link: https://www.linkedin.com/in/andrei-zernov-2751b0147
Source: https://www.teatmik.ee/en/personlegal/11555830-O%C3%9C-VERGRAND-GRUPP

Trilliant AG’s Numerous Connections to Gladius Network

As stated in the opening of this report, the SEC’s failure to perform adequate due diligence on various companies has allowed this network of criminals to successfully defraud millions of dollars from investors with virtual impunity.

Trilliant AG — Gladius Network Transplant #1 (Ori Levi)

The first connection between the Trilliant AG and Gladius Network that will be covered in this report is that of Trilliant AG ‘advisor’, ‘Ori Levi’.

Source: https://icorating.com/people/ori-levi-5614/
Source: https://medium.com/@PawenkoInna/gladius-decentralized-ddos-protection-in-blockchain-9e743e2de8a6
  • GoCoin — A payment processor created by Brock Pierce that boasts that its two biggest clients are Bitfinex and Tether (also created by Brock Pierce). In addition, GoCoin was named in the Backpage federal case as the primary payment processor used to facilitate the laundering of cryptocurrency — notably to at least one account that was confirmed as belonging to Global Trade Solutions.

Trilliant AG — Gladius Network Transplant #2 (Mike Balagna)

Another name on the Gladius Network team member list that bears interest is, ‘Mike Balagna’.

Source: https://en.bitcoinwiki.org/wiki/Trilliant
Photo showing initial contact with one of the maintainers on Telegram

Trilliant AG — Gladius Network Transplant #3 (Frank Bonnet)

Surprisingly, Mike Balagna and Ori Levi are not the only transplants from C̶r̶y̶p̶t̶o̶ ̶C̶a̶p̶i̶t̶a̶l̶ ̶C̶o̶ Trilliant AG.

Source: https://etherscan.io/token/0x71d01db8d6a2fbea7f8d434599c237980c234e4c?a=0x689c56aef474df92d44a1b70850f808488f9769c; Gladius Primary Token Contract
Source: https://etherscan.io/address/0xaaf4281fd8142dc3263b3303b0a6f62d00b2d07e#code ; Primary Crowdsale Contract for Gladius Network
Source: https://github.com/DecentralizedIT ; All related GitHub reepositories for Gladius Network’s token and smart contracts, which are owned and maintained by Frank Bonnet, solely.
Source: https://github.com/DecentralizedIT/gladius/tree/master/docs/reviews
Source: https://github.com/DecentralizedIT/gladius/blob/master/docs/reviews/Hosho.pdf

Looking into the Trilliant AG CEO — Sebastian Korbach

One could argue that the failure on the part of the SEC to appropriately vet the Gladius Network ICO despite allegedly conducting a thorough investigation into the project before deciding not to assess a penalty, could be due to ignorance, on their behalf, of the fact that Trilliant AG was and is tied intuitively to Crypto Capital Co.

Scrutinizing Sebastian Korbach

The first major clue that there is an intuitive link between Crypto Capital and Trilliant AG, that goes beyond a simple endorsement or sponsorship, is that the individual listed as the CEO of Trilliant AG notably has the same last name as the CEO of Crypto Capital AG (now known as Iridium AG).

Source: https://zh.chregister.ch/cr-portal/auszug/auszug.xhtml?uid=CHE-114.326.916 ; Corporate governance information regarding registered officers of Crypto Capital AG
Source: https://www.moneyhouse.ch/en/list/person/korbach-steffen
Notably, the address Dammstrasse 16, 6300 Zug, Switzerland, is the infamous location of ‘Crypto Silicon Valley’, as the location has been dubbed by countless blockchain publications. A list of all related blockchain-based projects (800+) at that same registration address can be found here: https://pastebin.com/r5LxA1Wz

2 comments on “SEC Incompetence Allows Crypto Capital Co. to Defraud Investors Out of $20M+ (Pt. 1)

  1. Pes2019
    Marketing (38)
    Besorolással nem rendelkező (22)
    Az elengedhetetlen sütik segítenek használhatóvá tenni a weboldalunkat azáltal, hogy engedélyeznek olyan alapvető funkciókat, mint az oldalon való navigáció és a weboldal biztonságos területeihez való hozzáférés. A weboldal ezen sütik nélkül nem tud megfelelően működni, így ezen sütik használata weboldalunk böngészése esetén elengedhetetlen, emiatt a weboldal használata során ezeket a sütiket nem lehet kikapcsolni. Böngésződet beállíthatod úgy is, hogy ezeket a sütiket se tárolja, ebben az esetben azonban a weboldalt sem fogod tudni rendeltetésszerűen használni.
    Név Szolgáltató Cél Lejárat Típus
    CookieConsent [x3] en.telenor.hu
    my.telenor.hu
    telenor.hu Stores the user’s cookie consent state for the current domain 1 év HTTP
    SID [x2] en.telenor.hu
    telenor.hu Preserves users states across page requests. 1 nap HTTP
    __cfduid [x4]
    browser-update.org
    sendinblue.com
    sibforms.com Used by the content network, Cloudflare, to identify trusted web traffic. 1 év HTTP
    local_storage_support_test twitter.com The cookie is used in context with the local-storage function in the browser. This function allows the website to load faster by pre-loading certain procedures. Persistent HTML
    PHPSESSID my.telenor.hu A felhasználó böngészési állapotát rögzíti az oldalbetöltések közt. Session HTTP
    s_foreign_user_properties go.telenor.hu Bejelentkezéshez használt cookiek. 1 nap HTTP
    s_terminal_groups4 go.telenor.hu Bejelentkezéshez használt cookiek. 1 nap HTTP
    s_user_session_id go.telenor.hu Felhasználói munkamenet fenntartására szolgáló süti. Session HTTP
    JSESSIONID nr-data.net Preserves users states across page requests.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.