Canadian Crypto ICO Owners Deny Being Behind A $30 Million Fraudulent Scheme Of FUEL Tokens
Canadian Crypto Firm Owners Deny Being Behind A Fraudulent Scheme
Lisa Angela Cheng and Kevin Patrick Hobbs have been accused of conducting a fraudulent Initial Coin Offering (ICO) based on deceit and false statements. Apparently, the intention was not to develop the products advertised and yet keep the funds gathered. Nonetheless, they assert that they did not tell investors the price of their tokens would increase.
Canadian Crypto Firm Owners Accused Of Fraud
There have been different Initial Coin Offerings (ICOs) released to the market in the last years. Specifically, in 2017 and the beginning of 2018, the number of ICOs released to the market grew exponentially. Nonetheless, a large number of these firms were scams and some of them were able to steal users’ funds.
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.
However, they claim that they did not tell investors that the value of their digital currencies was going to increase. According to the civil suit, the defendants wanted to liquidate their assets once they were aware that there was a criminal proceeding against them. This is why the court ordered to prevent these assets from being moved or sold out to the market.
This is not the first time that Hobbs is accused of violating the law. In the past, he was convicted of money laundering.
This is one of the largest civil forfeiture cases in British Columbia. The case would cost Hobbs and Cheng millions of dollars if they are convicted. At the same time, according to Bein Crypto, the civil suit says that the seriousness of the case is enough reason for the Canada Revenue Agency to intervene and conduct another investigation on the matter.
At the moment, the couple is denying all the charges. However, it seems that they will be convicted anyway.