ICO sale was the hottest trend in the year 2017 – among all such ICOs, the parent of FUEL token had raised a total of $30 million CAD (Canadian dollar). Recently, Canadian police ran an investigation into FUEL token and its founders which runs a firm called, Vanbex.
Etherparty / FUEL Token Caught with Fraud Charges
Per the reports, the company is a brainchild of Kevin Hobbs and Lisa Cheng who raised $22 million worth of fiat and crypto assets via crowdfunding of FUEL token. Police investigation of these founders reveals that ‘they haven’t intended to build any usable products’ which however promised to make FUEL token worth in forthcoming smart contract system known as Etherparty. Moreover, sources also reported that the firm had also discussed how this new Etherparty would boost the value of FUEL token.
Concerning the similar regards, Canada’s Ministry of Attorney General anxiously states that;
“FUEL tokens became virtually worthless in dollar value while not being capable of use in the non-existent smart contracts system or for any product or service other than a cryptocurrency coin creating service called Rocket”.
Director further continued that;
Hobbs and Cheng “did not intend to develop the products they were marketing but rather [acted] with [the] intention misappropriate the corporately invested funds raised for their own personal benefit.”
To note, investigation on Vanbex isn’t new –the police had reportedly investigated the founders in May 2018 as well. Accordingly, the Canadian Revenue Agency also began the tax probe. However, the token is already listed on Coinmarketcap with name Etherparty, following the token tag FUEL. At the moment, its value is declined to $0.013442 after begging off 4.36 percent within a couple of hours.
Although police are still investigating founders there are no criminal charges that have filed against founders yet – however, reports noting that founders of Vanbex denied the fraud charges. Moreover, founders also say the fraud charges are false and a police investigation is due to ‘false claims by a former contractor’.
Nevertheless to note that the Lisa Cheng (one such founder) tweeted a Goodbye office post on March 29 without further clarification.
What do you think the intention behind the founder’s tweet? Where must she be going after Goodbye office post? Let us know
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com