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Canadian Police Freezes Assets of FUEL Token Issuers due to Alleged $22 Million Fraud

Apr 1, 2019😃Bullish

Canadian police have frozen assets of the founders of blockchain consulting firm Vanbex, which raised $22 million in an alleged fraudulent initial coin offering (ICO).

In 2017, Vanbex reportedly launched its cryptocurrency Etherparty (FUEL), a token that was purportedly 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.

At press time, Vanbex has not commented on the court’s order to Cointelegraph, while the firm’s Twitter account is also silent about the issue.

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