Peter McCormack, the host of What Bitcoin Did podcast, alleged that The London Block Exchange is insolvent and that it has been insolvent since Autumn of 2018.
McCormack alleged the same in his tweet thread as he stated:
“1/ UK Cryptocurrency exchange @LBXSocial is trading insolvent and has been since Autumn 2018. Further:
– Staff have not been paid since Dec ’18
– The CEO @benjamindives has spent the pension pot
– Creditors are owed £millions
– There are no developers to fix app issues”
The exchange that was launched in Q1 of 2018 has “failed to hit growth targets” which has caused economic instability and put the business and the employees at risk.
Furthermore, his tweet read:
4/ Staff have been misled and treated poorly:
– Irregular/no pay in Q4 '18 (arrears settled in Jan '19)
– No pay at all in 2019
– Partial payments in Bitcoin Eth
– Pension deductions never hit the pension fund
– Culture of fear through the vilification of ex-staff members
— Dr. Peter McCormack – Full Stop (@PeterMcCormack) April 27, 2019
Failing to grow and generate income affected the functioning of the company, halting of the “app development in 2018”. In addition, the developers are “owed £hundreds of thousands”, and “Tech stack providers also owed significant sums”.
McCormack further tweeted:
– Cancelled before token sale due to lack of funding
– Despite funds raised in private sale
– Partial repayment of private sale
– Some investors still haven’t been refunded
– Unknown use of private sale funds”
Moreover, the allegations by McCormack stated that the “staff and creditors are being held to ransom as the company owns no assets”, which would lead to an “administration strike” and result in a loss for both the customers and the company. The customer funds were safe and under regulatory protection, according to him.
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