Vanbex crypto fraud case: Judge denied motion set aside asset freeze

A Supreme Court in British Colombia, Canada, has dismissed a motion to have an order ‘to freeze assets tied to the Vanbex cryptocurrency fraud case’ to be set aside. The British Columbia Civil Forfeiture Office issued the freeze order to preserve the assets from wastage or disposal by the Defendants.

According to the August 19 reports by the local news daily, Justice Elliot M. Myer, a British Columbia Supreme Court judge, while delivering the ruling stated:

“Looking at the matter overall, I do not think the defendants have demonstrated that the seizure is not within the interests of justice.”

In the case, the Defendants argued that the temporary preservation order should be set aside since the order was made ex parte. The Defendants stated that since the order to freeze the assets was granted without their lawyer being present, the asset freeze was therefore improper.

Defendants used registered companies to execute the crypto fraud

Allegedly, two companies, namely; Vanbex Group Inc. and EtherpartySmartContracts Inc. belonging to the Defendants, registered and operated a cryptocurrency investment with the sole intention to defraud. The crypto investment put up an investment offering with a token known as FUEL to the customers only to personally pocket the returns. As a result of the cryptocurrency fraud, the Defendants, Lisa Angela Cheng and Kevin Patrick Hobbs allegedly enriched themselves by a staggering $22.5 million. 

The Defendants, apart from being accused of committing the crypto fraud, are also facing tax evasion and money laundering charges. The temporary preservation order therefore also served to prevent attempts by the Defendants to liquidate their assets in the course of the investigation by the Royal Canadian Mounted Police. It also prevented the properties from accruing and accumulating debts while investigations are still ongoing. 

The three seized and frozen assets by the Civil Forfeiture Office included; the defendants’ luxury townhouse in Coal Harbour area of Vancouver, Canada, two top of the range Range Rover SUVs and undisclosed amounts of money in the Bank of Montreal. All the three properties seized are alleged to be the direct proceeds of the digital currency crime. The townhouse as recently listed goes for $7.9 million at the current market price and the Range Rover SUVs are estimated to be worth more than $67,500 each.