The Gibraltar Financial Services Commission (GFSC) is issuing this warning to the public regarding BetBox Gibraltar Ltd (BetBox), the website “betbox.ai”, the BetBox Initial Coin Offering (ICO) and the BetBox token (BETX), as further explained below.
BetBox is not regulated, registered or otherwise authorised by the GFSC, nor is an application pending for authorisation at present.
Checks that we have conducted at Companies House Gibraltar confirm that BetBox is not a Gibraltar company, nor is a similar name registered under the Business Names Registration Act.
The GFSC therefore urges the public to exercise appropriate caution in respect of BetBox, BetBox.ai, the BetBox ICO and the BetBox tokens.
People are able to verify whether a firm is licensed by the GFSC in Gibraltar, by checking our Regulated Entities section here.
Upon receipt of an enquiry, the GFSC reviewed BetBox’s website, https://BetBox.ai (the Website).
On its Website, BetBox describes itself as offering “the world’s first AI-driven Hedge Fund bringing the power of Machine Learning and Deep Neural Networks to turn sports betting into an alternative asset class.”
Betbox’s ICO (Business) White Paper, Version 2.1.1, states that the purpose for the pre-ICO and the ICO is “to provide the capital to enable BetBox as a Hedge Fund under the Alternative Investment Fund Managers Directive 2011/61/EU (AIFMD) Regulation in European Union (Gibraltar) to implement and refine its product and is in the process of obtaining a FSC (Gibraltar Financial Services Commission) approval license”.
White Paper Version 2.1.1 states that in order to fund the development of the BetBox Hedge Fund, BetBox Tokens or BETX tokens will be created on the Ethereum Blockchain. These tokens have been sold to the public during pre-ICO (completed in November 2017), and will be sold in the ICO and Second Coin Offering (SCO). The ICO is due to take place on 5 December 2017.
References to Gibraltar
A previous version of the ICO (Business) White Paper, Version 2.0.2, stated that the Website was operated by BetBox and that BetBox was physically based in Gibraltar. The Website previously stated that “BetBox is working under the helm of AIFMD, transposed in Gibraltar legislation via the Financial Services (Alternative Investment Fund Managers) Regulations 2013, and is in the process of obtaining a FSC (Gibraltar Financial Services Commission) approval licence.” [our emphasis]
Both versions of the ICO White Paper are signed off as being created in Gibraltar (see page 19 of Version 2.1.1).
In November 2017, the BetBox LinkedIn page indicated that it had a contact address in Gibraltar and a location marker provided on the BetBox Twitter page reflects a Gibraltar location.
The GFSC was concerned by the above because (i) no application to the GFSC for a licence has been submitted; (ii) BetBox is not a Gibraltar company, nor is a similar name registered under the Business Names Registration Act; and (iii) BetBox do not appear to actually be physically based in Gibraltar.
After correspondence with the GFSC, BetBox have amended their Website which now states that “BetBox Hedge Fund will work under the helm of Alternative Investment Fund Managers Directive 2011/61/EU (AIFMD), transposed in Gibraltar legislation via the Financial Services (Alternative Investment Fund Managers) Regulations 2013, and will be soon in the process of obtaining a FSC (Gibraltar Financial Services Commission) approval license.” [our emphasis] The updated version of the ICO White Paper, Version 2.1.1 now states that: “The Hedge Fund Company will establish in Gibraltar.”
Any persons who are already involved in any dealings relating to the above and have concerns, should contact our Enforcement team on +350 200 40283 or by selecting Enforcement on our Contact Us page.
We would also draw your attention to the GFSC’s Statement dated 22 September 2017 on ICOs.