Canadian-based blockchain firm, Vanbex has confirmed selling its IP to Hyperion Technologies, a Canadian crypto brokerage firm, CoinDesk reports.
According to Lisa Cheng, Vanbex co-founder, the buy off means that the products, as well as business models under Vanbex, will continue to operate under Hyperion Technologies.
Hyperion Technologies CEO, Michael Zavet, praised the acquisition saying that it was a strategic business move that will allow his company to have a large market share.
According to the press statement issued, the FUEL token that was given during an ICO which is also subject to criminal investigations will be utilized to clear transaction fees, API integration as well pay for various services offered by both Hyperion Technologies and Vanbex.
After the announcement, some Vanbex investors questioned the move seeking clarification on what will happen to the token from the firm’s CEO Kevin Hobbs. In Vanbex’s Telegram account, some investors sought to know if the deal was legally binding saying that Hyperion Technologies should continue using the FUEL token.
However, CoinDesk reports that Hyperion Technologies, as well as Vanbex, did not respond to their queries on the fate of FUEL token.
As per the press release, Vanbex will now become a blockchain consulting firm and will help Hyperion Technologies to grow in the industry.
Months ago, Vanbex revealed that it was planning to sell some of its assets to sort out the negative publicity that was affecting the company.
The press release indicated that Cheng is poised to become the firm’s new CEO while Hobbs will lead the consulting business.
Vanbex has been under criminal investigation by Canadian police since May 2018 shortly after the Canadian tax agency started a tax probe. The Canadian government agencies have frozen Hobbs and Cheng bank accounts and their properties were confiscated in March. According to government agencies, Vanbex’s founders misused the $22 million that was raised during the ICO and did not deliver the product to the investors. The founders have denied the allegations and are fighting to clear their names in the Canadian courts.