The largest shareholder in Overstock-funded blockchain wealth administration startup Bankorus has claimed that the agency has no cash left.
In a assertion issued on Oct. 6, Sonic Zhang stated that earlier funding offers for Bankorus had fallen by means of and that every one its workers have resigned.
Zhang: Bankorus “has run out of cash”
As a contributor of greater than $1 million to the corporate, Zhang stated that he realized of the issues from its co-founder, Gregory van den Bergh, in July.
“Bankorus has run out of cash, because the second round investors pulled their funds,” Zhang wrote.
Overstock STO fails to avoid wasting fortunes
Previously often known as MICAI, Bankorus had tried to launch an preliminary coin providing (ICO) in 2019, simply earlier than the marketplace for this funding methodology crashed.
Then, tZero, Overstock’s safety token platform, provided funding and a transition to a safety token providing, or STO.
According to Zhang, as of early 2019, the transition was progressing efficiently, however sudden teething issues drastically undermined the operation.
All Bankorus has now, he added, is a $1 million funding in Lithuania’s Rato Credit Union. Zhang added:
“And the token holders doesn’t have any legal claims over this, based on the agreements they signed.”
The debacle comes amid the issues for Overstock itself. As Cointelegraph reported, the well-known Bitcoin-friendly retail big abruptly misplaced its CEO Patrick Byrne in August. In September, a lawsuit alleging securities legislation violation added to its misfortune.
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