The cryptocurrency is slowly gaining the pace in today’s time, owing to its versatility and non-restrictiveness by any of the national laws. Many new technology companies have been successfully established to streamline the crypto payment system and bring them into the daily applications of some services. But, one such case of Werner Boehm shook the entire crypto industry when his supposedly ‘art of fraud into a business model’ got exposed worldwide. This article details appropriately on the case and mentions all of its intricate details.
A briefing on the case
BitRush is a registered public traded company dealing with the cryptographic payment solutions and is based in Toronto in association with the Canadian Securities Exchange (CSE). On December 7, 2016, the majority of the directors of the company held an emergency board meeting to discuss the future of the corporation and investigate on sure of the cases that have hampered the overall reputation of the same. In it, the decision of terminating the position of Werner Boehm as CEO of the company was taken on the grounds of unauthorized and inaccurate press releases done without the prior permission of the Board
The causes of the decision
The following mention briefly about the different reasons and facts that led to the taking of such a harsh verdict in the history of the company: –
- Boehm as a CEO deceived and betrayed the shareholders of their investments in the corporation, as well as broke the trust of his friends and family by putting their futures on the bet of his fraud business model.
- He transferred more than 500,000 CAD from BitRush to his owned chain of companies without anyone’s consent or decision and then later refused to present any form of accounts or statements on the transfers. This led to a massive disproportionation in the company’s assets and put its entire business model at a huge risk.
- Some instances of Werner Boehmsending blackmail messages to his known acquaintances surfaced in front of the board, and it created the ground for substantial ethical immorality caused by these blackmail campaigns and how they affected some stakeholders and friends of Boehm.
The actions taken
Following up on the proofs mentioned above and accusations, the Board not only terminated his CEO post but also offered him a penalty on the following terms: –
- Cancellation of more than 16 million shares of his company MezzaCap Limited and transferring about 10 million dollars out of these to their rightful owners
- Order from the court to pay the overall costs borne by the applicants of the lawsuit against him and was decided to be 200,000 CAD
- Issuing of an official warning for not dealing with any of the companies associated with Werner Boehm, as it could seriously damage the individual’s life and create a huge disproportionation ruckus
Hence, the entire case shook the foundations of BitRush and created situations for the verge of the closing of the same. However, things coming into the light at the right time somehow saved its day, and fair actions were taken against him.