The British boss of a company selling the virtual currency Bitcoin is now wanted by Cyprus police for he has been accused of fraud. For the last couple of days, Neo & Bee has been under fire as allegations emerged that the CEO of the company Danny Brewster committed fraud against customers.
The situation deteriorated for Danny Brewster when Cyprus issued a warrant to the police for the arrest on Friday. According to Cyprus Mail Neo & Bee’s CEO is a person of interest in an ongoing investigation involving the whole fraud-case. Mr. Brewster is accused of failing to deliver £70,000 worth of Bitcoins to their bonafide owners.
Not just he failed to pay up the money to investors, Danny Brewster also racked up debts of about a million Euros on the recession-hit Cyprus. He was quite sophisticated in his act as he used a major marketing campaign, employed nearly 20 staff and developers, rented office space and bought plush furniture.
Mr. Brewster thus, spent close to half-a-million Euros alone on a huge advertising blitz for the recent launch of his company, Neo & Bee and other lavish things. However, his entire extravaganza has cost him huge debt and left his employees baffled and angry. According to reports most if not all of those now out of work were not paid in March.
His case reminds the people about Mark Karpeles of Mt. Gox wherein he invested in paraphernalia not from the funds from the company but from the investors’ money. Later on his company collapsed and a lot of investors lost their investment. Mr. Karpeles is now facing several legal cases in Japanese and US courts.
Danny Brewster Spent Money Like Crazy, Say Creditors
Similar to Mark Karpeles, Danny Brewster is going to face several litigations as his case not just involves cheating the investors but also the employees and others in Cyprus. According to a local police official in Cyprus investigations are on-going and did not rule out issuing a European arrest warrant.
Creditors are worried whether Mr. Brewster will be able to pay back the money as they say that he spent like crazy without giving a damn to the fact that he was not earning much. Despite the grand opening of his Bitcoin store in a swanky Nicosia office block on February 24, Brewster’s store disappeared and his whereabouts remains a mystery now.
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To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org