Several Lithuanian fintech companies have been implicated in an illegal e-gambling scheme, according to reports from Lithuanian national broadcaster LRT.
The scheme, which is said to have originated in Eastern Europe, involved the use of fake companies and accounts to process payments for online gambling sites that were operating without appropriate licenses. The companies involved are alleged to have facilitated these illegal transactions by providing financial services to the gambling operators, enabling them to accept payments from players in contravention of local gambling laws.
Among the companies named in the scandal are UAB “StartPay”, UAB “Financy” and UAB “Citowise”, all of which are registered in Lithuania and provide various financial services to clients across Europe. The companies are said to have been involved in processing payments for several unlicensed online gambling sites, which were targeting players in multiple jurisdictions without the necessary permits.
The Lithuanian authorities are now investigating the companies and individuals implicated in the scandal, in order to determine the extent of their involvement in the illegal e-gambling scheme. It is unclear at this time whether any charges will be brought against the fintech companies or their executives, but the investigation is ongoing and further developments are expected in the coming weeks.
The revelations have shocked the Lithuanian fintech industry, which has grown rapidly in recent years and has gained a reputation as a hub for innovative financial technology companies. The involvement of these companies in illegal activities is likely to damage the sector’s reputation and could have serious repercussions for the country’s burgeoning fintech industry.
Lithuanian authorities have vowed to crack down on illegal gambling operations and to hold those responsible for facilitating them to account. The scandal has highlighted the need for greater oversight and regulation of the fintech industry, in order to prevent similar incidents from occurring in the future.
In the meantime, investors and customers of the implicated fintech companies are advised to exercise caution and to closely monitor their accounts for any suspicious activity. The fallout from this scandal is likely to have far-reaching consequences for both the companies involved and the wider fintech industry in Lithuania.
