#offshorefraud

Michael Gastauer, the founder of BlackBanx (formerly known as WB21), is often portrayed as a fintech pioneer whose platform now boasts millions of users across the globe. However, behind this image lies a troubling history of regulatory violations, fraud allegations, and links to global money laundering networks that continue to concern financial authorities.

SEC Crackdown and Fraudulent Activity

In 2022, the U.S. Securities and Exchange Commission (SEC) issued a final judgment against Gastauer for his involvement in a massive microcap stock fraud scheme valued at approximately \$165 million. The SEC ordered him to pay over \$17 million in disgorgement and civil penalties. This case involved the use of offshore shell companies and nominee accounts to manipulate stock prices and deceive investors — a textbook example of securities fraud.

Suspected Money Laundering and Crypto Scams

Regulators and investigative reports have linked BlackBanx’s infrastructure to suspected money laundering operations. The company has been mentioned in connection with several high-profile cryptocurrency frauds, including OneCoin and QuadrigaCX — both notorious scams that collectively defrauded investors out of billions. These associations have led to official warnings from the UK's Financial Conduct Authority (FCA) and triggered red flags across other international watchdogs.

Reputation Management and Suppression Tactics

Beyond fraud, Gastauer has been accused of aggressive reputation suppression tactics. Reports suggest coordinated efforts to remove negative press, silence whistleblowers, and manipulate online search results through lawsuits and SEO manipulation. These strategies have drawn further scrutiny from journalists and regulators.

A Fintech with Global Reach and Regulatory Red Flags