9 Jun, 2023 @ 19:30
2 mins read

D-Day for Globix pair set to take the stand over missing millions in alleged Gibraltar crypto fraud

Gibraltar Supreme Court
Gibraltar-Supreme-Court

THE alleged architects of the Globix crypto fraud that has seen millions vanish are set to take the stand in Gibraltar on Tuesday.

Sole shareholder Damian Carreras and tech officer Pavel Sidirov will be quizzed over allegations they syphoned €8 million and €3 million respectively from company coffers.

In total, liquidators are trying to trace €40 million that inexplicably vanished from Globix crypto wallets after the exchange had locked investors out of their funds in early 2022.

In a recent hearing, the court heard that Carreras has not been cooperating with liquidators to produce the relevant documents. 

While many of crypto wallets belonging to Covid have been identified and frozen, it appears that both Carreras and Sidirov have refused to identify their own personal wallets.

Last week, Carreras released a statement declaring his ‘respect for the legal process and my willingness to cooperate in every way possible.’

He also said that his ‘primary objective remains unwavering and that is to recover the system and honour the trust that investors have placed in me by returning the capital.’

The 39-year-old Gibraltarian, who is currently hiding out in Barcelona due to reported death threats, may appear by video link.

His Russian partner, Sidirov, told the Olive Press he would send a representative, although when contacted his lawyer did not seem to be aware that the hearing was taking place.

Should the pair fail to show up or send adequate representation, they will face arrest warrants over contempt of court, according to legal sources.

In the statement, Carreras blamed Globix’s losses on the ‘theft of the system’, apparently referencing the alleged delivery of the Globix platform to a company in Ukraine.

Sidirov also maintains that the ‘funds disappeared in Ukraine’ and that he only received ‘€200,000 to €300,000’ for his role running the platform ‘as a freelancer.’

He also assured the Olive Press that he did not buy ‘more than one type of property’ with his earnings from Globix.

The denial comes amid reports that the pair splashed out on an opulent lifestyle of flash cars and Rolex watches.

Yet the Ukraine tale, prompted by the reported kidnapping of Sidirov in Alicante last year, has been labelled ‘unreliable’.

Liquidators hired to unravel the inner workings of the crypto exchange and trace the missing funds consider it to be a wild good chase, according to court documents.

Incorporated in the British Virgin Islands under the company Miracle World Venture, the Globix platform was an unregulated crypto exchange that ensnared a cadre of very high-powered figures within Gibraltar with promises of 1% returns per day minimum on investments.

Carreras would boast to potential investors that this would translate into an ‘unbelievable 30% monthly return’, causing a ‘FOMO’ (fear of missing out) effect.

He also reportedly lured in fresh recruits by showing them the list of high-profile ‘VIP’ investors already on board.

The saga will do little to help the British Overseas Dominion (BOD) get off the Financial Action Task Force’s (FATF) ‘grey list’ even as it tries to position itself as a hub for crypto trading.

The list, including Panama, Iran, and the UAE (as well as fellow BOD the Cayman Islands), highlights jurisdictions with ‘strategic deficiencies in its anti money laundering and counter terrorist financing regime.’

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Walter Finch

Walter - or Walt to most people - is a former and sometimes still photographer and filmmaker who likes to dig under the surface.
A NCTJ-trained journalist, he came to the Costa del Sol - Gibraltar hotspot from the Daily Mail in 2022 to report on organised crime, corruption, financial fraud and a little bit of whatever is going on.
Got a story? [email protected]
@waltfinc

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