British Columbia Supreme Court Judge Denies Plea In Vanbex and FUEL Token Fraud Case
Earlier this year BitcoinExchangeGuide had reported a story about Lisa Angela Cheng and Kevin Patrick Hobbs having been accused of conducting a fraudulent Initial Coin Offering (ICO) based on deceit and false statements. They assert that they did not tell investors the price of their tokens would increase.
Mrs. Cheng and Mr. Hobbs created a digital asset called FUEL and sold the tokens through an ICO. The investigation conducted by the RCMP determined that they were able to raise $30 million after faking corporate investment opportunities. At the same time, Hobbs is being accused of using the funds of investors to gamble.
Now according to Vancouver based media outlet called The Province a Supreme Court judge in British Columbia (BC), Canada has denied a plea to repeal asset freeze. This motion had been filed to set aside a temporary preservation order which was issued by the British Columbia Civil Forfeiture Office to restrict case-related assets from being traded or accruing debt.
A couple of years back, Vanbek launched its cryptocurrency Etherparty (FUEL) that was designed to provide an ecosystem for the company’s smart contracts system, promising investors massive returns.
In a FUEL pre-sale, Hobbs and Cheng reportedly raised more than 30 million Canadian dollars ($22 million), which was allegedly accompanied by a sudden acquisition of substantial wealth by both founders, the document notes.
B.C. Supreme Court Judge Elliot M. Myers said the office had made out a serious case to be tried for fraud and that the assets sought to be preserved are the proceeds of that alleged crime, saying:
“Looking at the matter overall, I do not think the defendants have demonstrated that the seizure is clearly not within the interests of justice.”