Vanbex CEO Kevin Hobbs and founder Lisa Cheng face fraud allegations for their $33-million ICO in 2017. Investors were told that tokens purchased in the ICO could be used in a smart contract platform under development called Etherparty. A year-long investigation by the B.C. Securities Commission claims the money raised was used for million-dollar condos and a Lamborghini. (Business in Vancouver)
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Vanbex CEO Kevin Hobbs and founder Lisa Cheng face fraud allegations for their $33-million ICO in 2017. Investors were told that tokens purchased in the ICO could be used in a smart contract platform under development called Etherparty. A year-long investigation by the B.C. Securities Commission claims the money raised was used for million-dollar condos and a Lamborghini. (Business in Vancouver)
Talking point: The case highlights the industry’s ongoing challenges of not being regulated, though regulators are looking to change that. In March, Canadian Securities Administrators and the Investment Industry Regulatory Organization of Canada proposed new rules that would require exchanges to register as marketplaces and/or investment dealers to protect users. The private sector, meanwhile, is being cautious about working cryptocurrency companies; also in March, cryptocurrency companies rushed to have financial statements completed as auditors backed away from the space.
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