Vanbex, a company out of Vancouver that introduced the Fuel cryptocurrency, has already come under fire for what has been alleged to be a fraudulent initial coin offering (ICO). It is already facing one lawsuit because of its actions and, according to new court documents, a second class-action suit has now been filed against the company and its owners, who reportedly used the investments to feed their own luxury lifestyles.
The new lawsuit was filed on behalf of two residents in British Columbia who reportedly purchased about $30,000 in Fuel each. Now that the company’s true intentions have come to light, investors only have losses to report, and the lawsuit states, “The plaintiffs and class members have suffered the loss of their full investments in Fuel tokens purchased from Vanbex. Fuel tokens cannot legally be sold, without approval from the regulator and compliance with the Securities Act. In addition, Vanbex is not a viable business and has not met its milestones. The Fuel tokens have no real, legal value.”
Named in the lawsuit are Vanbex’s founders, Lisa Cheng and Kevin Hobbs, as well as Brian Onn, the company’s chief architect, and developer Jeffery Walsh. TD Bank has been included, with the plaintiffs asserting that the bank was negligent in providing proper oversight of the account Hobbs maintained with the bank. They add that TD Bank failed to act responsibly by not warning other banks that were sending funds for Hobbs from accounts he held at those facilities to the TD Bank account.
The Vanbex principles and employees stand accused of “unjust enrichment” for using the Fuel investments for their own benefit. Cheng and Hobbs reportedly used the money to purchase luxury vehicles and real estate, as well as on high-roller gambling trips.
The lawsuit hopes to find approval to receive general and punitive damages, and additional restitution. It wants the court to validate the argument that the FUEL ICO was a scam and that Vanbex broke regulations tied to securities laws, highlighting previous comments by the Director of Civil Forfeiture that Vanbex had not developed a usable product.
Vanbex is now having to defend itself on several fronts and all litigation is still active. None of the claims have yet been proven in court, but it’s only a matter of time before the paper trails expose what really transpired.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.
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