Cypriot officials have announced the issue of an arrest warrant for Danny Brewster, the founder and CEO of Neo, a Cyprus-based bitcoin institution and depository following accusations of fraud.
In addition to Neo, Brewster is also known for his role in pioneering the payment service Bee, which has drawn the focus of Cypriot officials after an earlier report this month from the Cyprus Mail, warning over the defrauding of customers. This subsequently spawned an investigation that levied three formal charges of fraud against the CEO, including his arrest.
Can ODPs Bring Transparency to South Africa’s FX & Derivatives Industry?Go to article >>
Charges Of Defrauding Customers
Brewster’s embattled firm Neo and Bee have been under scrutiny since early this month when issues of solvency began to surface – he also exited the country in a bid to secure investment to company from going asunder. Amongst many of the allegations that the Cypriot official’s statements cited, two customers had apparently paid $20,800 (€15,000) and $27,700 (€20,000) respectively for bitcoins that were never received.
The latest woes highlight Neo and Bee’s abrupt fall from grace, having originally garnered widespread optimism from the community, namely in regards to the acceptance of bitcoin. Brewster has already noted in the past that he eventually plans to sell his equity in the company, though it remains to be seen how this most recent round of legal turmoil would affect his plans – presently the CEO’s whereabouts are unknown since the launching of the charges by Cypriot officials.