Court documents made available online last week show ICO industry services company Vanbex is under investigation and their properties have been seized in a civil case, after raising CAD$30 million in cryptocurrency and fiat in a 2017 ICO for a project called Etherparty which issued a utility token called Fuel.
“The criminal investigation is ongoing and currently no charges have been laid against either of the defendants.”
According to the report, not long after raising the funds, Vanbex co-founders Kevin Hobbs and Lisa Cheng purchased a luxury downtown condo in Vancouver for CAD$4 million they recently tried to liquidate for CAD$7.8 million.
The paper reports that Vanbex co-founder Kevin Hobbs not only leased a CAD$500,000 Lamborghini, he bought a $3.8 million dollar house in Toronto with cash and gambled away almost CAD$2 million. No stranger to crime, Hobbs was busted in an NYC hotel in 2005 with 100 pounds of marijuana and CAD$200,000 dollars in cash and was criminally charged with marijuana production and money laundering in Nova Scotia in 2008-2009.
Hobbs and Cheng talked to Coindesk and have denied the allegations of fraud, saying the investigations are the result of “false claims by a former contractor.”
The founders also issued a statement online.
Please find our response to the accusations made by the Director of Civil Forfeiture regarding the seizure of our personal assets located here. Facts:
- Vanbex is far from a shell company. We are a legitimate consulting and development business in the cryptocurrency field – which is completely legal.
- As opposed to what the media and the lawsuit have stated about us being a “shell company” or scam, Vanbex has over 26 staff and a very substantial payroll to match.
- We were never aware of any RCMP or CRA investigation until we saw the notice of civil claim in late March.
- We never liquidated any assets to “avoid” any investigation. All of our assets were purchased with funds that were lawfully ours to use.
- We have never misappropriated funds.
- No company funds were ever used for gambling purposes.
- None of our assets are the proceeds or instruments of any unlawful activity.
- FUEL tokens are a necessary and important part of our business model and a real form of currency.
- The RCMP and the Canada Revenue Agency never contacted us or we would have immediately provided them with all the truthful information and documents.
- At no time was there any deceit or false representation to misappropriate funds from our customers or shareholders.
Please see our full response to the Civil Claim that was filed this afternoon. We intend to defend vigorously and to present a complete and truthful narrative for the court. We are confident that at the end of the day the truth will come out and the facts will prevail in our favour.
We would appreciate if the media would clarify their stories to reflect these facts. Please note we will not be taking interviews until the court proceedings have been completed.
Lisa Cheng and Kevin Hobbs
- Indian Central Bankers Excludes Cryptocurrency Projects from it’s New Startup Fintech Sandbox - April 19, 2019
- Enterprise Ethereum Alliance Plans to Launch New Token Taxonomy Initiative - April 19, 2019
- Social Blockchain Project BitGive Signs Deal with Uphold - April 19, 2019
- Crypto Wars Continue – Bitcoin’s Self Proclaimed Founder Craig Wright Threatens to Sue Ethereum’s Vitalik Buterin - April 19, 2019
- Gate.io Exchange Releases IEO Startup Platform and Launches First Project with CNNS - April 18, 2019
- Telegram Cuts Deal With Wirecard to Build Blockchain Shared Payment and Banking Solutions For TON - April 17, 2019
- Token-as-a-Service (TaaS) Shuts Down – Distributes Assets to Token Owners - April 17, 2019
- eToroX Launches 8 Stablecoins on New Cryptocurrency Exchange - April 17, 2019
- Powerhouse Production Company Endemol Shine International Partners with Blockchain Startup BitMovio - April 17, 2019
- Huobi Prime’s Second EO Launch – Two Billion NEW Tokens Sold in Six Seconds - April 17, 2019
- Panxora safeguards ICO assets with crypto treasury management service - April 17, 2019
- Turing Award Winner and MIT Cryptographer, Dr. Silvio Micali, Publicly Opens TestNet at VC-backed Algorand Blockchain - April 16, 2019
- Gibraltar Stock Exchange Opens the Doors to Secondary Market for Security Tokens - April 15, 2019
- Bittreo Releases Crypto Brokerage SAAS - April 14, 2019
- International Monetary Fund (IMF) Head Says Cryptocurrency is Shaking the System – Wary Eye on Silicon Valley Data Collectors - April 14, 2019
- US Regulator SEC Issues First ‘No Action’ Letter for Unregistered ICO - April 13, 2019
- Jason Hanania: Architecture of a Technodemocracy – Author Interview - April 12, 2019
- Block.one’s FinLab EOS VC Fund Invests in Moonlighting - April 11, 2019
- Blockstack Files with SEC for Reg A+ Token Offering - April 11, 2019
- US Congress Introduces Bipartisan-Supported Token Taxonomy Act - April 10, 2019