Embattled Canadian blockchain firm Vanbex sells IP amid criminal probe

Embattled Canadian blockchain firm Vanbex sells IP amid criminal probe

Canadian blockchain firm Vanbex has sold its intellectual property to Hyperion, a Toronto-based crypto broker dealer. Announcing the acquisition in a press release, Hyperion stated that it would help propel its business to the next stage of growth. Vanbex has been embroiled in several legal woes, from class-action lawsuits to prosecution over fraudulent ICO and the acquisition is set to give its products and services a lifeline.

Hyperion acquired two blockchain technology products developed by Vanbex. The first is Rocket, an end-to-end tokenization platform that allows the creation, deployment and issuance of various forms of digital assets. The other product is CryptoTaxes, a simplified tax solution for crypto traders.

Michael Zavet, the CEO of Hyperion, commented, “Hyperion has always focused on growth-to-value for its clients, investors, and stakeholders. Acquiring Rocket and CryptoTaxes was a strategic move enabling us to focus on a larger market share, which we are very excited about.”

Hyperion also revealed that the FUEL token would continue to operate as a utility-based crypto and will be used to pay for transaction fees, API integration and other services provided in the digital asset ecosystem that it had acquired. FUEL tokens were launched by Vanbex in 2017 in an ICO that has come to haunt the company. Having raised $22 million from the ICO with promises of huge returns to investors, law enforcement soon intervened and froze the company’s assets for fraud.

Despite the allegations of fraud and problems with the law, Vanbex co-founder Lisa Cheng believes that the products they developed will outlive the controversy and under Hyperion’s stewardship, they’ll continue to serve their users.

She commented, “This acquisition allows the value of the products and the business models they represent to continue under Hyperion’s banner and we are thrilled to see Rocket and CryptoTaxes reach their potential this way. It has certainly been a tumultuous year in the blockchain industry and we are excited that Rocket and CryptoTaxes will be represented and valued for the compelling solutions that they are.”

The acquisition of Vanbex was announced two months ago, although at the time the company didn’t reveal the identity of the acquirer. According to an update on the Vanbex site in June, the company was moving its technology to a new company. Cheng, one of the co-founders was said would move to the new company to help with the transition.

Kevin Hobbs, the other co-founder would remain at Vanbex, leading the consulting arm of the company and helping it to fight its legal battles and clear its name. It’s unclear whether the terms still remain and if Cheng will move on to Hyperion.

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