The Canadian Police Freezes Assets of FUEL Token Founders due to CAD $30 Million ICO Fraud

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Reports just reaching us is that the Canadian Police in the North America Continent has frozen assets belonging to the owners of Vanbex. Vanbex is a blockchain consulting firm which raised more than $30 million (Canadian dollars) in suspected fraudulent Initial Coin Offering (ICO). This was made known in a court document released on the March 14th, 2019.

Per the document released, the founders of the Canadian based company Vanbex, Kevin Hobbs and Lisa Cheng said to the public that they operated a Vancouver-based cryptocurrency firm which started from the year 2017. The court claims that the firm, which was interchangeably called Vanbex and Etherparty is actually a shell firm that produced no useable products.

The Canadian police have now frozen Vanbex co-founder Hobbs’ two accounts and also seized the founders’ two new Land Rovers, as well as ordered the founders not to sell, borrow or damage their Vancouver condominium for at least 30 days or until further order from the court has been passed.

In 2017, Vanbex reportedly launched its cryptocurrency Etherparty (FUEL), a token that was purportedly designed to provide an ecosystem for the company’s Smart contract system, promising investors huge returns. The court document also notes that in a FUEL pre-sale, Hobbs and Cheng reportedly raised more than 30 million Canadian dollars ($22 million), which was supposedly followed by a quick acquisition of substantial wealth by both founders.

Following the suspected fraudulent ICO scheme, the Royal Canadian Mounted Police (RCMP) launched a fraud investigation into Etherparty and Vanbex, as well as Hobbs and Cheng, in May 2018.

The RCMP determined that from May 2017 through July 2018, Hobbs and Cheng were defrauding investors by falsely offering corporate investment in FUEL tokens while not intending to use the invested funds to develop products as promised, but rather with the intention to use them for their own financial gain.

Following the allegation, the court document listed properties that were allegedly purchased with the funds gotten from the sale of the tokens, including real estate and vehicles, as well as noted that a part of the funds was also used by the two founders to participate in gambling activities.

The court document also highlighted some of Hobbs’ criminal history, including money Laundering and marijuana trafficking.

The news has also saw Etherparty go down about 9.49 percent within 24 hours, trading at $0.012922, with its market capitalization around $7.7 million, according to CoinMarketCap.

 

What do you think about this Vanbex? Do you think they are scammers?

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Julzin 'Sensei' - Altcoin Ninjas - See you soon Ninjas!

 


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