Moti Kahana/Mordechai Kahana — fraudulent business proposal, 100.000$ missing
I met Moti Kahana during North American Bitcoin conference in Miami on 2018.01.17 we had some interesting conversations and he presented himself as a trustworthy businessmen and a well known philanthropist.
On 2018.04.13 he approached me through signal messenger saying: "Hi brother i got into buying and selling BTC we have 1M for sale if u have buerys 5 to 10% discount depends on day and seller"
My business does cryptocurrency OTC, so this was a normal and attractive offer typical in this market. He also offered to use a well known law company as escrow.
The law companies involved was - The Seiden Group - Seidenlegal.com and Confidential Global Investigations - csilegal.com - confidentialglobal.com
These companies did KYC checks on our company on Moti's behalf before we proceeded with a deal. We had email from the director of The Seiden Group - Robert Seiden introducing us to his team to proceed with KYC.
We passed KYC.
We did some due diligence on Mr. Mordechai Kahana and the only things that could be found about him online was that he is running a not for profit organisation amaliah.org and has been a great entrepreneur and helped other people along the way.
After that these law companies sent a letter of intent on behalf of Mr. Kahana. Content is as follows:
I am pleased to present to you the following Letter of Intent for the purchase of $100, 000 USD
BTC, to be executed in tranches of 10-15 BTC per day. The total discount will be 6% to the
seller, of which 5% will be provided to the buyer and 1% to the Gate Inc as broker's
Commission. You have agreed to onboard $100, 000 into an account held on behalf of The Gate
Inc. Once the funds have been received, I will proceed to make best efforts to secure a seller. If
after two weeks' time, a seller has not been secure, you have the right to request a full refund or
to extend the transaction time for a period specified by you. Please note that a full KYC will
need to be completed in order to proceed.
Founder & CEO
The Gate Inc
After receiving this letter of intent Mr. Robert Seiden has disclosed:
Please note that this deal has no involvement of The Seiden Group, Confidential Global Investigations or our client 500OTC and we are not responsible for any element of this deal. Jen has simply provided the attachment as a courtesy to Moti. Thank you both.
We felt confident enough not to ask for escrow and as per letter of intent we have engaged in a business deal with Moti Kahana(Thegate INC) and wired him 84.800 EUR(equal to 100.000 USD at the time) on 2018.05.17 and Mr. Kahana was unable to deliver Bitcoin cryptocurrency, nor make a refund to our account since. This has been ongoing for over 5 months now.
Mr. Kahana has used The Seiden Group and Confidential Global Investigations to add legitimacy to his business proposal, but failed to deliver on every single statement he made.
Deal flow with Moti Kahana(Thegate INC) with timestamps: https://docs.google.com/spreadsheets/d/1Iyjc_SMsPIKEfHSDP2_OfBmwHOt_i3hr67pNNxiPOQI/edit?usp=sharing
Moti Kahana has came up with 48 excuses/explanations delaying the payment to us, starting 2018.05.31 and the payment has not been received yet.
He failed at minimum 7 times to acquire cryptocurrencies from sellers or auctions and has canceled 2 meetings without giving any reasonable heads up before that.
Starting September we have significantly escalated this issue contacting the law firms which were involved.
Moti Kahana started hiding behind lawyers and promising that everything will be fine and he wants to resolve it, but always needs to talk with his lawyers or waiting for them so they can prepare some "proposal".
During the 5 month period he never mentioned, that he would not pay the money back and most of the time he responded in a timely manner with more excuses.
In October he confessed, that he has gambled away a large portion of the sent amount, by buying some cryptocurrency for himself and waiting for the price to go up.
Moti's lawyer has sent a proposal to settle this debt, by offering to pay back the money in ~5 months with no losses covered, which we turned down and replied with a letter of demand to settle in 2 weeks.
Right now we are preparing to file for court in a few days and it is very likely he will get criminal charges for this as well.
Beware doing any business with the guy, because he looks trustworthy and he is always optimistic, creating the impression that he is working hard on the issues that need solving. Moti Kahana will say anything you would like to hear and will not keep any of his promises.