A Crypto-Diplomat in Dubai
FinTelegram has closely covered the interesting story about the German entrepreneur and diplomat Dr. Stephan WELK and set him up a well-deserved place in the “People Radar“. WELK works as a diplomat in the services of the Central African Republic (CAR) and mediates business through his diplomatic channels. Worldwide, discreet and diplomatically protected. WELK has recently focused on the area of cryptocurrencies as reported by FinTelegram and GoMoPa (long after FinTelegram brought it to public attention – sorry, we have to brag a bit). WELK is listed in the NEXUS GLOBAL prospectus as a member of the management team of this crypto-MLM scheme (read our reports here). Apparently, WELK supports the crypto-scheme founded and led by Christian Michel SCHEIBENER and Michael THOMALE. This actually would fit perfectly since all gentlemen are regularly in Dubai.
In addition, all of these people are experienced actors when it comes to pyramid systems and Ponzi schemes. A common past is something to build upon, I guess. Stephan WELK is also connected to the Austrian crypto-scene as a consultant to Michael PREISS, founder and managing director of BTC Management GmbH.
As we hear from people involved around WELK, he specializes in organizing discrete cash flows and the “virtual logistics” behind Bitcoin transactions. When transporting cash, packaging as diplomatic mail should be helpful. Moreover, he has excellent contacts with bank managers all over the world. But WELK, described as a charismatic person, can obviously do a lot more than this for his friends and business partners. Do you need a diplomatic passport? No problem!
WELK and the BECKER Passport Comedy
According to a today’s report published by the German newspaper BILD, Stephan WELK is supposed to be the initiative force behind the Boris BECKER‘s passport comedy. As you perhaps already know, the former professional tennis player is facing insolvency proceedings and, as a diplomat of the CAR, had hoped for appropriate protection.
Allegedly, WELK received EUR 500,000 in cash from BECKER to obtain a CAR diplomatic passport in London with which Becker demanded diplomatic immunity in insolvency proceedings which was filed by his creditors in England for allegedly 60 million euros in debt.
It turns out that WELK evidently is no stranger to the German police, writes BILD. Fraud, forgery of documents, driving without a driver’s license – the list of his entries should be long, the newspaper writes. The current place of his residence is apparently unknown. Police investigations have already taken place in Frankfurt, Ingolstadt, Kassel, Bayreuth, and Munich, among other places. Well, maybe the authorities should try Dubai?
Well, maybe NEXUS GLOBAL is another topic WELK will be asked about by the respective authorities. NEXUS GLOBAL is a crypto-mining pyramid scheme. This was an interesting topic just a few months ago in view of the exploding prices of Bitcoin & Co. Thanks to exploding Bitcoin exchange rates, investors were paid high returns. Even back then, amidst the 2017 crypto-hype, crypto-mining itself was not a profitable business. But thanks to the ever-rising prices of the cryptocurrencies, the Bitcoins mined yesterday were worth 10% more the next day and returns for investors could be paid out of this trading profits. The same principle applies to Crypto-MLM systems focusing on crypto-trading.
Many investors, many questions…
Unfortunately, these aggressive crypto-MLM systems do not work in falling, stagnating or even slightly rising market environments. The returns for existing investors must then be taken from the new funds paid in by new investors. That’s how pyramid games or Ponzi systems typically work. In view of the current market development around the cryptocurrencies, we can expect the collapse of the first crypto-MLM systems over the next few weeks. Even the slight recovery on the cryptocurrency exchanges is of no help here. This is also because financial regulators worldwide are now intervening against these crypto-MLMs and banning them.
Regarding the acquisition of new Crypto-MLM investors, however, dazzling people like Dr. Stephan WELK are doing very well. But even he will not be able to prevent the collapse. But maybe then he’ll have a lot of questions to answer. And there will be many questions because the collapse of the crypto-MLM systems operating worldwide is confronted with billions of investor funds, which then suddenly disappear into the darkness of the cryptocurrencies. Our forecast is that the cryptocurrencies have opened a door to a new dimension of investor fraud that must first be recognizedby the regulatory authorities as well as by the investigative forces in its scope. There will be a lot of work for investor protectors, regulators, and courts in the future.
Many thanks Tamir for your investigative research and efforts to protect investors from such scams.