site.btaBETL Under Investigation: Financial Supervision Commission Probes Suspected Pyramid Scheme

The Financial Supervision Commission (FSC) has contacted UK's financial regulator, the Financial Conduct Authority, to inquire about the activities of Blue Electric Technology (BETL), FSC announced in a statement to BTA on Thursday.

FSC is investigating BETL due to a lack of information on whether the company has provided investment services or holds a license as an investment intermediary under financial market regulations. FSC clarified that it does not oversee BETL's activities because the company is not regulated under the Financial Supervision Commission Act. BETL has not been granted a license to operate as an investment intermediary, and it is not listed in the European Securities and Markets Authority (ESMA)'s register of investment intermediaries.

As a result, BETL is not authorized to offer investment services or engage in investment activities under the Markets in Financial Instruments Act (MIFA) in Bulgaria or any other EU member state.

FSC also clarified whether the regulation of such investment proposals falls within its remit. It stated that it does not oversee BETL's activities, as the company is not regulated under the Financial Supervision Commission Act. BETL has not been licensed to operate as an investment intermediary, and there is no record of the company in the ESMA's register of investment intermediaries.

This means BETL is not authorized to provide investment services or engage in investment activities under the Markets in Financial Instruments Act (MIFA) in Bulgaria or any other EU member state.

FSC and its units supervise investment services and activities related to financial instruments as outlined by MIFA.

While BETL does not offer investment services, FSC noted that the company will be added to its list of unlicensed entities prohibited from operating as investment intermediaries or investment management companies in Bulgaria. This measure is intended to inform the public.

BETL is engaged in the shared rental of external batteries for mobile devices in Bulgaria. Bulgarian National Television (BNT) reported that Bulgarians invested approximately USD 80 million in the scheme over six months, but the company ceased paying dividends to investors on December 5, 2024.

The company is registered in the UK, according to available information.

Two days ago, the Ministry of Interior announced an investigation into BETL, with over 20 complaints already filed by investors.

"It is likely a pyramid scheme involved in fraudulent criminal activities," caretaker Minister of Interior Atanas Ilkov said at a press conference on Tuesday.

"BETL misled us," said Dimitar Dimitrov, BETL's representative for Vratsa (Northwest Bulgaria) in a statement to BTA earlier this week. He claimed the company has defrauded nearly 30,000 people in Bulgaria.