Canadian police freeze assets of FUEL Token issuers due to suspected $ 22 million fraud

The Canadian police have frozen the assets of the founders of blockchain consultancy Vanbex, which raised $ 22 million in a so-called fraudulent first-currency offer (ICO). The development was reported in a court document that was released on March 14.

According to the document, the founders of Vanbex, Kevin Hobbs and Lisa Cheng, claimed that they would run a Vancouver-based cryptocurrency company from 2017. The company, which was called Vanbex and Etherparty interchangeably, is actually a shell company that has not developed any usable solutions. products, the court argues.

The police have now frozen two Vanbex co-founder Hobbs accounts and seized the two new Land Rovers from the founders, and ordered the founders not to sell, borrow or damage the Vancouver flat for at least 30 days or until a subsequent order from the court.

In 2017, Vanbex reportedly launched its cryptocurrency Etherparty (FUEL), a sign allegedly designed to provide an ecosystem for the company's smart contract system, with which investors promise huge returns. In a FUEL presale, Hobbs and Cheng reportedly raised more than 30 million Canadian dollars ($ 22 million), allegedly accompanied by a sudden acquisition of substantial wealth by both founders, the notes in the document.

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

The RCMP noted that from May 2017 to July 2018, Hobbs and Cheng cheated investors by falsely offering FUEL tokens business investment without using the resources invested to develop products, but with the intention of using them for their personal benefit .

Following the allegation, the court document listed items that were allegedly purchased from the misappropriated funds, including real estate and vehicles, and it was also noted that some of the money was used by Hobbs to participate in gambling activities.

The document also mentioned some of Hobbs's criminal history, including money laundering and marijuana trafficking.

At the time of the press, Vanbex did not comment on the court's order to Cointelegraph, while Twitter from the company is account is also silent about the problem.

Etherparty drops by 8 percent over the day and trades at $ 0.0128, with a market capitalization of around $ 7.7 million, according to CoinMarketCap.

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