Ontario applies to seize luxury $3.6 million Toronto condo tied to alleged cryptocurrency fraud
CTV
The Ontario government has applied to seize a luxury $3.6 million condo on the 52nd floor of a building in downtown Toronto, alleging in a court application it was part of a lavish lifestyle made possible through a multi-million dollar cryptocurrency fraud scheme.
Even as regulators are becoming more assertive in the booming digital currencies sector -- now worth $3 trillion globally by some estimates -- observers say fraud is rising as well, asking would-be investors to be wary of hype and do their research.
"I think part of what is enticing to people is that this is a decentralized currency and not well regulated. That attracts some people. And along with that comes high risk," Angela Dennis of the Better Business Bureau told CTV News Toronto.
Authorities say that Kevin Hobbs and a partner raised $33.7 million at their Vancouver-based company, Vanbex, promoting a cryptocurrency called "Fuel" and what they called innovative "smart contracts."