In line with a recent ‘official document‘ published by the court, the Canadian police have seized assets of the founders of the blockchain consulting company named ‘Vanbex’, that raised around $22 Mln in an alleged Etherparty token sale ‘fraud‘ scheme.
As per the document, Vanbex founders namely ‘Kevin Hobbs’ and ‘Lisa Cheng’ claimed to the general public that they operated a Vancouver-based crypto company, beginning from 2017. The company, that was interchangeably referred to as Vanbex and Etherparty, is formally a shell company that developed no useable outputs, the court document argues.
The police have presently seized 2 accounts of Vanbex co-founder John Hobbs, his two new Land Rovers, as well as ordered the founders not to sell, borrow or damage their Vancouver condominium for a min. thirty days or till a further notice from the court.
Earlier in 2017, Vanbex reportedly launched its cryptocurrency Etherparty [FUEL], a token that was supposedly designed to offer an area for the company’s smart contracts system, promising investors huge returns. In FUEL pre-sale, Hobbs and Cheng reportedly successfully raised around 30 Mln’s in Canadian dollars [around $22 Mln], that was allegedly followed up by a sudden acquisition of considerable wealth by both founders, the court document added.
Following the allegedly illicit ‘ICO‘ scheme, the RCMP [Royal Canadian Mounted Police] launched a fraud investigation into Etherparty and Vanbex, as well as Hobbs and Cheng, earlier in May, last year.
The Royal Canadian Mounted Police determined that from May 2017 to July 2018, Hobbs and Cheng were defrauding investors by incorrectly providing company’s investment in FUEL tokens whereas not desiring to use the endowed funds to develop any products, but rather with intention to use them for their personal profits.
Following the allegation, the court document listed objects of property that were allegedly purchased with the gathered funds, as well as real estate and vehicles, moreover adding that some part of the funds were used by Hobbs to engage in gambling activities.
The document conjointly outlined a number of Hobbs’ criminal history, as well as money laundering activities along with marijuana trafficking.
At the reporting time, Vanbex has not commented on the court’s order, whereas the firm’s Twitter ‘account‘ is also silent regarding the allegations.