The police arrived at the headquarters of the technology company Xixoio, which is located in Prague 8. According to the Euro weekly, company representatives Richard Watzke and Henry Ertner are in a pre-trial detention cell with a proposal for remand. The police are searching the offices. The company offers investments in digital tokens.
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“I can only state in general terms that the National Central Office against Organized Crime today carries out actions in criminal proceedings. We will not provide more information yet,” NCOZ spokesman Jaroslav Ibehej said when asked if the intervention concerns Xixoio. On the spot, the police confirmed that they were carrying out criminal proceedings at the residence.
“The police came to me; they had some questions and requested some documents, but I have no idea why. It was obvious from their questions that they were confused about the matter. For example, they thought we were trading in cryptocurrencies,” told Supervisory Board member and minority shareholder Jiří Machalický.
In the past, a well-known investor and former head of Komerční Banka (a Czech Bank), Radovan Vávra, was preparing a joint project with Xixoio. The project was supposed to be about selling tokens to SimpleCell. But later, Vávra completely abandoned the project to develop intelligent electricity meters. Now, on social networks, he responded to questions about Xixoio’s situation by shrugging his shoulders or replying that he had no idea what was happening in the company.
Xixoio offers people value for money. He wants to achieve this by creating an alternative financial system based on blockchain technology, i.e., using a decentralized database. Through the scheme, companies will be able to issue tokens instead of traditional shares and thus finance their development.
By purchasing tokens, people can allegedly participate in the possible profits of companies. In this context, Xixoio talks about the so-called tokenization of the economy. However, experts on the financial market and blockchain technology previously had doubts. After all, the E15 newspaper wrote about it a year ago.
Watzke of Xixoio is at large. Police seized property worth 50 million from the suspects
Xixoio CEOs Richard Watzke and Henry Ertner are at large. The National Organized Crime Agency (NCOZ) arrested them on Tuesday for fraud and money laundering. During the intervention, the anti-mafia unit secured property worth 50 million crowns.
As part of the criminal proceedings, two natural persons were detained. Seven house searches and four searches of other premises and land were also carried out. These are the details of the intervention at the Xixoio company.
Richard Watzke’s company focused on the so-called tokenization of companies, which is a way to raise finance for a company through the issuance of tokens. When the company launched a massive campaign at the beginning of this year, there were suspicions that it might be a fraud.
The police suspect the company’s management of this. Police have now confirmed earlier speculation that they have opened criminal proceedings on suspicion of fraud and money laundering. At the same time, NCOZ criminal investigators secured evidentiary material in the form of documentary materials and digital data. In addition, two personal motor vehicles, a family house, and other valuable items such as proceeds from criminal activities with a total value of approximately 50 million crowns were secured.
The NCOZ released the suspects Watzke and Ertner today. On November 30, 2022, both natural persons were released from detention. No criminal prosecution has yet been initiated in the matter.
Xixoio has participated in the financing of several companies. They now state that if it is necessary to return the money collected from small investors, they will do so. Watzke is not the only shareholder of the company. In total, Xixoio has 134 other shareholders, among them, for example, people who are connected to the HE3DA battery development project.