Home / Blockchain / Zwoop Blockchain Company suspends its initial money offer (ICO) due to legal advice

Zwoop Blockchain Company suspends its initial money offer (ICO) due to legal advice

Blockchain-Company-Zwoop-cancels-its-Initial-Coin-supply-and-stops-operating

The start of the Zwoop cryptocurrency, which was supported by the billionaire investor Robert Friedland, entered the administration. The information was released in a recent one relationship of The Telegraph on January 11th.

Apparently, the company deposited the administration at the end of November 2018 and employees and suppliers all over the world were left with unpaid wages. Such as The next Web he explains, the company owes a £ 42,000 London-based marketing agency and a £ 30,000 public relations firm.

Alessandro Gadotti is the founder of Zwoop that aims to use artificial intelligence and other technologies to gather information from e-commerce sites and find the best possible prices for products. Zwoop received $ 13 million from Robert Friedland, the founder of Ivanhoe Capital Corporation and Ivanhoe Mines.

According to The Next Web, the company wanted to raise $ 30 million through a token sale. The report says that when they delayed the ICO, Gadotti left the company and an employee found $ 2 million in payments that could not be accounted for. The company also employed 56 people in London, Singapore and Hong Kong.

Gadotti said that they did not abuse the funds the company received and that the $ 2 million dollars could have been used to help the company grow.

The initial offer of coins was announced in August to take place at Septemeber. However, ICO was suspended a few days before the official sale.

As for The Next Web, employees and freelancers work on the company
we were worried about the slow pace of Zwoop's development and its application. However, Gadotti was convinced that the app would be released soon.

The employees of Zwoop and Ivanhoe Capital faced Gadotti shortly after this situation. As mentioned before, Gadotti explained that the company was making legitimate payments.

During 2017 and 2018 several ICOs were launched. However, some of them were simply scams or fraudulent companies that wanted to steal investors' funds. This is why regulatory agencies around the world have begun to play a more active role in regulating the crypto and blockchain market.

Clearly, this is not the first time that an ICO fails and closes its doors as did Zwoop.

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