Football Index owners spent £ 15million in customer money on global expansion plan – The Athletic


The owners of Football Index transferred around £ 15million of customer stakes to a connected company which spent it on developing technology to sell similar products in foreign jurisdictions as the gambling website went live. collapsed.

A document seen by The Athletic reveals that an eight-figure sum was transferred from BetIndex, the Jersey-based company that managed Football Index, to its holding company Index Labs as part of the “Hadron Project.”

The plan was to repackage the Football Index technology and sell it elsewhere as a cricket platform in India, a football platform in Germany, or an NFL platform in the United States.

Football Index has been marketed as a “virtual footballer exchange” with player “stocks” traded for cash online and users earning cash “dividends” based on footballers’ actual performance on the pitch.

“Dividend” payments were cut by up to 90% in March, causing the biggest disaster in UK player history as ordinary football fans lost huge sums of money overnight.

A damning review of the business collapse released last month found that while there were around £ 124million in virtual stock portfolios on the site, only a small portion of that was held in cash, which means the company was unable to cope with a decline in wealth. A largely unanswered question over the past few months has been where this money actually went.

A presentation prepared in August this year by Insolvency Practitioners BDO, however, features Project Lynx, an attempt to secure additional funding from investors to continue building the Hadron Project – even after Football’s collapse. Index.

Source link


About Author

Leave A Reply