Etherparty Founders Account Freezed By Canadian Court.
Canadian police confiscates assets owned by the founders of blockchain services company Vanbex —as a result of a fraud investigation patterning to the 2017 initial coin offering (ICO) that raised $22 million.
From court documents issued against Vanbex. The founders of Vanbex and Etherparty, Kevin Hobbs and Lisa Cheng raised $30 million CAD (about $22 million) worth of fiat and cryptocurrency through the company’s FUEL token ICO.
During the 2017 token offering by Vanbex. The company promised investors of huge returns in the value of the FUEL token that they are buying through the ICO. The company was able to raise $30 million Canadian Dollars. They claimed the funds will be used in the forthcoming smart contract system called Etherparty.
The court ordered the seizure of the properties acquired by Hobbs and Cheng because those funds was they said, was bought with wrongly acquire wealth. Two land rovers, real estate and other properties were confiscated by the court. Both founders account were equally freezed.
The Canadian Police started it’s investigations on the company in May 2018. They started the investigation because Vanbex was unable to deliver the product they claimed they will be offering to its investors since 2017.
Further, Hobbs and Cheng took issue with the authorities’ claim that Vanbex produced no usable products. “We have had more than 50 clients” – not two, as the court documents allege – “and we have two excellent products.”
Vanbex account have not been freezed and no criminal charges have been filed against Hobbs and Cheng. They have claimed innocence against the charges filed against them, saying that the allegations are false.
Etherparty is down by 8 percent and is trading at $0.0128 with a market cap of about $7.7 million.
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