Canadian police investigating fraud case related to Etherparty (FUEL) ICO

01 Apr, 2019
by Ryan Boltman
News
Canadian police investigating fraud case related to Etherparty (FUEL) ICO

Canadian police have moved in on Etherparty (FUEL) blockchain services company Vanbex, following an on-going fraud case investigation surrounding the Initial Coin Offering (ICO) which was held in 2017. 

Accoding to Coindesk, Canadian police have frozen assets of the two owners of Vanbex, Kevin Hobbs and Lisa Cheng. 

Canadian Police believe that the FUEL ICO, which raised roughly $22 million, believe that HObbs and Cheng “did not intend to develop the products they were marketing but rather [acted] with [the] intention to misappropriate the corporately invested funds raised for their own personal benefit,” according to the director of civil forfeiture at Canadas Ministry of Attorney General. 

The pair had admitted that thet are complying with the investigation, which is on going and no criminal charges have been files so far. The Canadian government has however frozen the couples personal accounts with $1 million in funds being held there, as well as seized their two Land Rovers. 

The Vanbex pair have admitted that the claims are "false" and were made by a previous contractor. According to the court papers, the pair "acquired sudden and substantial personal wealth" around the time of the FUEL ICO. Duing this time they purchaed two condominiums in Vancouver and Toronto totalling $6 million. They also purchased two Land Rovers and leased a Lamborghini for a three-year term at $375,000. 

To make matters more suspect for the pair, Kevin Hobbs is a known gambler who gambled large amounts of money during the time as well. Hobbs also has a criminal record in Canada for mutiple offences including money laundering, growing and trafficking in Marijuana and being in possession of ciminally obtained property. 

Vanbex have stated that they will comply with law enforecement, “We remain confident that the truth will prevail, and this will be behind us soon,” they said.

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