Black Banx

Marked as

Medium Risk Company

Last updated - January 28, 2026

Medium Risk

i
2.7

2

User Score

2.5

Trust Score

3.1

Brand Score

OVERVIEW

About Black Banx

Black Banx Group, formerly WB21, faces serious scrutiny over its alleged ties to major crypto frauds like OneCoin and QuadrigaCX. Founder Michael Gastauer’s $17 million SEC fraud penalty and multiple regulatory warnings raise major compliance concerns. Despite bold claims of billions in revenue and millions of users, the firm lacks independent audits and is flagged for weak KYC/AML practices.

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CONNECTIONS AND RELATIONSHIP

CONTACT INFORMATION

FINANCIAL RISK AUDIT

For Consumers
For Consumers

High Risk

Based on the available data, we advise consumers to avoid this Company altogether.

This advisory is based on an aggregate risk score derived from OSINT, Adverse Media, Reviews, and Risk Factors identified in our research.

You are likely to be at great risk by engaging in any sort of consumer-related activity with this entity.

For Employees
For Employees

Medium Risk

Based on the available data, we advise employees to be mindful when considering or continuing work with this Company.

This advisory stems from a medium-risk score compiled from OSINT, Adverse Media, Reviews, and Risk Factors uncovered in our analysis.

Employment with this entity may involve moderate risks.

For Banks & Investors
For Banks & Investors

High Risk

Based on the available data, we urge investors and bankers to avoid financial involvement with this Company.

This advisory is informed by an aggregate risk score based on OSINT, Adverse Media, Reviews, and Risk Factors identified through our investigation.

Engaging in investment or lending activities with this entity poses a substantial risk to your financial interests.

ASSESSMENT OUTCOME
  • Safe to Onboard

  • Enhanced Due Diligence required

  • Do Not Onboard

RECOMMENDATIONS
  • Monitor adverse media every 6 months

  • File SAR (Suspicious Activity Report) is warranted

  • Escalation to compliance committee

  • None

Do you agree with this our assessment on Black Banx?

OSINT DATA POINT

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Owner

Michael Gastauer
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Website

www.blackbanx.com
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Established

2014
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Jurisdiction

Canada
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City

London
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State

England
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Country

United Kingdom
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Category

Fintech
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Revenue

$4.3 Billion
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Ongoing Lawsuits

None
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Adverse Media

Limited
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Client Base

78 Million
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Employees

8,700+
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Profit Before Tax

$1.6 Billion
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Cost/Income Ratio

63%
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Crypto Services

Yes
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Global Reach

180+ Countries
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AI Integration

High
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Expansion Focus

Africa, South Asia, Latin America
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Previous Name

WB21
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Consumer Complaints

Unresponsive support
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Judgment

$17 Million
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FCA Warning

Withdrawn
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Controversies

Securities Fraud
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Payment Processor

High Risk
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ENTERPRISE RISK ASSESSMENT (ERA)

Limited transparency regarding regulatory compliance and operational details raises concerns about legitimacy.

Doubts have been raised about the accuracy of Black Banx’s claims, such as inflated customer numbers and website traffic, which contradict visitation statistics.

Black Banx has been associated with scams like OneCoin and QuadrigaCX, indicating potential involvement in fraudulent activities.

Adverse media exists linking Black Banx to high-risk payment processing and questionable cryptocurrency dealings, though coverage is not extensive.

Black Banx’s heavy involvement in cryptocurrency services is considered high-risk due to market volatility and past links to fraudulent schemes.

Michael Gastauer, Black Banx’s founder, faced a $17 million fine from the SEC in June 2022 for a securities manipulation scheme, though no ongoing lawsuits against the company itself are noted.

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AML and KYC Assessment

Regulatory and Compliance Screening

  • Sanctions Matches
  • Yes
  • No
  • Unclear
  • PEP Status
  • Yes
  • No
  • Unclear
  • Watchlist: (Interpol, EU, UN, OFAC, etc).
  • Yes
  • No
  • Unclear
  • Law Enforcement Mentions
  • Yes
  • No
  • Unclear

Litigation and Legal Proceedings

  • Criminal Proceedings
  • Yes
  • No
  • Unclear
  • Regulatory Enforcement Actions: [SEC, FCA, SEBI, etc.]
  • Yes
  • No
  • Unclear
  • Ongoing Investigations
  • Yes
  • No
  • Unclear
  • Reputational and Adv
  • Yes
  • No
  • Unclear

Reputational and Adverse Media Risks

  • Negative Media Mentions
  • Yes
  • No
  • Unclear
  • Allegations / Scandals
  • Yes
  • No
  • Unclear
  • Social Media Red Flags
  • Yes
  • No
  • Unclear
  • Censorship Attempts [PR, Takedowns, DMCA Abuse, etc.]
  • Yes
  • No
  • Unclear

Geographic and Jurisdictional Risk

  • Country Risk Level
  • Yes
  • No
  • Unclear
  • High-Risk Sections [Crypto, Gambling, Arms, etc.]
  • Yes
  • No
  • Unclear
  • Offshore Jurisdictions Used [Panama, BVI, Cyprus, etc.]
  • Yes
  • No
  • Unclear

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RED FLAGS AND ADVERSE NEWS

coming

Fintelegram,.com

Visit Link

Black Banx's role in laundering proceeds from Roger Knox's $164M securities fraud scheme and withholding $9M from collapsed QuadrigaCX exchange.

  • First Detected

    24/01/2020
  • Sentiment Analysis

    Negative
  • Reach

    >1000
  • POV

    Third Person
  • Risk Factor

    High
  • Type

    Criticism
  • Traffic Source

    Website
  • SERP

    Top 30
  • Share of Voice

    20%
  • Primary Keyword

    Allegation
coming

Fintelegram,.com

Visit Link

Black Banx (WB21), accused of facilitating securities fraud via Roger Knox ,OneCoin ,QuadrigaCX scheme collapse as unauthorized payment processor.

  • First Detected

    12/07/2020
  • Sentiment Analysis

    Negative
  • Reach

    >1000
  • POV

    Third Person
  • Risk Factor

    High
  • Type

    Criticism
  • Traffic Source

    Website
  • SERP

    Top 30
  • Share of Voice

    20%
  • Primary Keyword

    Allegation

Other Red-Flags and Adverse News

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2025 Ratings and Report on Black Banx

Financial Profile for Black Banx

Do you want to unlock a detailed Risk Assessment and audit report for Black Banx?

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Based on user engagement on this review profile, ProConsumer will decide to publish its Risk Audit report for public if a threshold engagement, traffic and user input is achieved.

  • Known Assets: [Real estate, investments, companies]

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  • Suspicious Transactions

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  • Liabilities: [Bankruptcies, defaults, debts]

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  • Wealth Sources: [Legitimate / Unclear / High-risk]

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  • Bank Relationships

    greentick
  • Bank Relationships

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  • Ultimate Beneficial Owner(s) (UBOs)

    greentick
  • Shareholding structure

    greentick
  • Associated entities & subsidiaries

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  • Offshore / shell company links

    greentick
  • Trusts / Nominee arrangements

    greentick
  • Business Model Assessment

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Consumer Reviews and Ratings for
Black Banx

All comments are user-generated content and may not be verified. They represent the personal opinions of the public and should not be relied upon. These comments do not influence or determine our overall rating.

User Rating for Black Banx

Black Banx Group, formerly WB21, faces serious scrutiny over its alleged ties to major crypto frauds like OneCoin and QuadrigaCX. Founder Michael Gastauer’s $17 million SEC fraud penalty and multiple regulatory warnings raise major compliance concerns. Despite bold claims of billions in revenue and millions of users, the firm lacks independent audits and is flagged for weak KYC/AML practices.

USER’S SCORE

2

Trust

1.5

Safety

1.8

Brand

1.8

Risk

3

Pros

  • greentick

    Highly experienced

  • greentick

    Well-recognized name

Cons

  • redcros

    Faced allegations of scamming others

  • redcros

    Allegedly sold fake silver

  • redcros

    Sued multiple times

  • redcros

    Unregulated industry

  • redcros

    Alarming number of complaints online

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  • Trust
  • Brand
  • Safety
  • Risk

PROS

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CONS

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  • author-default
  • Daniel O’Neill
    January 27, 2026 at 11:39 am

Historical adverse media reports from financial watchdogs allege that Black Banx (as WB21) was used as a payment processor in controversial situations connected to large crypto fraud schemes, including portions of the OneCoin and QuadrigaCX collapses, which can signal serious operational and compliance vulnerabilities.

Trust

1/5

Safety

2/5

Brand

2/5

Risk

3/5

  • author-default
  • Heidi Watson
    July 28, 2025 at 10:40 am

I signed up for Black Banx thinking it was some next‑gen fintech app—but what a mistake. Turns out the UK FCA issued a warning, and the company is built around unregulated shell setups in places like Cyprus and Curaçao. Founder Michael Gastauer has a criminal record—including a $17 million fine for helping launder fraud proceeds—and is tied to processing funds from shady crypto schemes like OneCoin and QuadrigaCX. They claim to have 20 million customers and operate in 180 countries, but web traffic stats and independent analysis seriously doubt those numbers. Plus tons of user complaints about frozen accounts, opaque fees and no real support—classic smoke and mirrors fintech operation. If anyone values their money or peace of mind, they should steer clear of these too-good-to-be-true promises.

Trust

1/5

Safety

1/5

Brand

1/5

Risk

4/5

  • author-default
  • Amaris Nolan
    June 26, 2025 at 7:20 am

Founder Michael Gastauer was hit with a $17 million SEC enforcement action in 2022 for allegedly aiding a $165 million microcap stock fraud via shell entities and bank account obfuscation. While not criminal, the penalty and formal judgement are serious markers of wrongdoing at an executive level.

Trust

2/5

Safety

2/5

Brand

2/5

Risk

3/5

  • author-default
  • Zayla Pierce
    June 26, 2025 at 7:20 am

Despite bold claims of serving “78 million clients” with $4.3 billion in revenue and 8,700 employees, publicly available web traffic metrics and brand analytics suggest much lower engagement—raising questions about inflated reporting. Without independent audits to substantiate these figures, reliance on internal numbers lacks credibility.

Trust

2/5

Safety

2/5

Brand

2/5

Risk

2/5

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