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Digital Identity, Security & Online Fraud

Fintech company WB21 faces lawsuit and scam accusations

Monday 3 December 2018 | 11:47 AM CET

The US Securities and Exchange Commission has revealed a civil lawsuit against WB21, for aiding and abetting the sale of USD 165 million worth of shares in microcap stocks.

The SEC mentioned that WB21 and its tech for international payments were a circumvention of regulations designed to disguise the clients’ identities. They also suggested that the CEO of WB21, Michael Gastauer, lied to banks, and made a series of false claims in dealing with various organisations.

On its website, WB21 calls itself a digital bank and offers account opening for 180 countries in 28 currencies. One of FinTech Futures’ sources claimed that two companies are owed USD 2 million via WB21’s money transfer service, and that transfers from WB21 to third parties have not been executed.

Michael Gastauer denies having ever been accused of fraud, however FinTech Futures contacted WB21 for its response to these accusations and it has not replied yet.

More: Link
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