In late 2017, an American citizen living in Tokyo Japan founded a company called “EZeeBUY” and generated initial funding for the company from 9 co-founders. EZeeBUY also attempted to raise additional funds via an ICO in 2018, seeking a further $30-50 million. The concept seemed like a good idea – a mobile commerce platform that allowed consumers to purchase any product simply by taking a photo.
Fast-forward about 9 months from the initial funding of the company, and it turns out the founder David Estrada embezzled all of the money invested by the 9 co-founders. Additionally, he attempted to defraud ICO investors by making numerous false claims and misrepresentations about the company and his background.
Investigations revealed that his entire background was fake: he claimed to be a graduate of Harvard University (he never attended); he claimed to own 11 Ferraris (a lie); he claimed to have invested his own money into EZeeBUY (did invested nothing); he claimed to have lawyers, accountants, and staff on the payroll of EZeeBUY (all identities were faked); he forged signatures on corporate resolutions documents, and made numerous other false claims as part of this scam. It was further discovered he had a criminal record in the USA prior to moving to Japan. The co-founders lost all of their money and referred Estrada to the Japanese Police who are currently investigating this crime.
THIS EVENT WAS THE GENESIS OF EZeeFRAUD. The co-founders realized that there are few ways for investors to protect themselves from this kind of a scam. There is rampant fraud in the startup and ICO/Blockchain world, where people with criminal backgrounds are using tech startups and ICO’s to defraud investors of millions of dollars.
The EZeeFRAUD Team have identified a critical gap in funding for tech startups – in particular, those that are related to crypto and blockchain. The gap is related to due diligence on those seeking to raise fund for these endeavors. There is a significant amount of fraud in these areas, and investors’ funds are being embezzled at an alarming rate. The problem is that investors do not have a reliable source to check the background credentials of those seeking to raise money.
The co-founders who were defrauded by David Estrada thought there has to be a better way. So they set about developing technology and algorithms that can scan both the Internet and proprietary databases to uncover potential fraud before it’s too late.
Our vision is a startup and crypto world without fraud. It’s a big task, for sure, but we believe our tools and technologies can make a significant impact in reducing theft and embezzlement when it comes to ICO/blockchain startups. We believe people (like David Estrada and his EZeeBUY scam) who intentionally steal from investors have no place in our society – we will continue to expose them and ensure they are prosecuted to the fullest extent of the law.
The EZeeFRAUD Team are developing new algorithms and processes to work with other major Internet professional networking platforms to help them also snuff out fraudulent educational credentials and fraudulent news stories (e.g., “fake news”). These efforts are progressing quickly as a rash of new fraudsters use these platforms as global recruiting grounds for their scams.
Visit us at www.ezeefraud.com or engage with us on Twitter: @EZeeFRAUD