Veteran industry entrepreneur Adriaan Brink is at the centre of what appears to be a growing Initial Coin Offering scandal involving his BetterBetting project and associated Betr crypto token.
In a major article Friday the Calvin Ayre site details the fall-out from the 2017 $5.3 million ICO as investors that include prominent industry figures lodge complaints with the Estonian Police and Border Guard and the Fiscal Intelligence Unit, making serious allegations that include nepotism, embezzlement, fraud, money laundering, violation of an obligation to maintain accounting, larceny and acquisition, storage or marketing of property received through the commission of offence.
Brink's concept apparently lies in tatters after alleged mismanagement and a lack of transparency by the entrepreneur and his CTO, Ian Sherrington, and his repeated commitments to buy back Betr tokens at the post-ICO market price appear hollow viewed against the current status of Betr, which is trading 95 percent below its ICO value.
Brink was the man with a concept but no wherewithal to realise it when he persuaded his investors to back him, according to the apparent point-man for the investors, industry executive Hilly Erlich.
His idea was to “bring a new paradigm to the world of sports betting. By combining the power of blockchain with our experience and knowledge of the sports betting industry, we are introducing a new betting currency that understands the underlying structure of a sports bet, ensuring fair and robust betting opportunities between two parties, who do not have any relationship with one another.”
But the UK, Asian and Israel investors claim that no accounts for the company were ever provided despite numerous requests for progress reports as mismanagement saw the venture decline despite Brink's investor presentations to the contrary.
Investors are also concerned at the Liechtenstein banking facilities allegedly used by Brink to take in their investments.
The account was held by a Bahamian company titled Lanzerac Holdings owned by Brink, and several disbursements from the account apparently unrelated to the business of BetterBetting are being questioned after it transpired that Lanzerac Holdings has been dissolved since 2009.
“According to the files, the investors’ money paid for monthly stipends for Brink’s close friends and family including Brink’s son, and Brink’s sister. There were also substantial unexplained payments to Brink’s ex-wife and mother from the company coffers,” the Calvin Ayre report notes.
With the situation declining and differences of opinion growing, Erlich, who was a director, called on Brink to halt operations which had strayed far away from the original concept. When Brink insisted on continuing, Erlich resigned, along with fellow advisory board member, Mitchell Rankin.
Brink has yet to respond to the allegations, and the story is still developing. See the full detail here.