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A Cease-and-Desist notice has been served to SYS Labs Holdings Ltd in the UAE DIFC (doing business as Rollux) as well as its directors and Syscoin Foundation Board Members Jagdeep Sidhu, Michiel Naering and Chris O’Shea among other persons of interest. Syscoin is the fifth oldest surviving cryptocurrency in the world, with its blockchain having launched before Ethereum and having been adopted via merge-mining by over 70% of Bitcoin miners worldwide.
The notice, issued by Wasel & Wasel, led by Mahmoud Abuwasel, the Vice-President of the Hague Institute for Global Justice and an expert in INTERPOL Red Notice complaints and cross-border litigation, details a range of alleged illegal activities committed by the directors and officers of SYS Labs (dba Rollux) and Syscoin. The team behind SYS Labs and Syscoin Foundation are currently in-fighting over control of their legal entities and accusing each other of gross mismanagement and fraud.
It alleges making fraudulent statements and assurances to investors, a conspiracy to commit an unlawful act and breach of fiduciary duty. Additionally, the Notice also alleges the breaches of the DIFC Laws with regards to the UAE regulations on promotion of digital assets. Dubai Financial Services Authority (DFSA) was also informed of the alleged breaches of its regulations on token promotion.
The Cease-and-Desist notice demanded SYS Labs Holdings Ltd to immediately cease and desist from all fraudulent and misleading activities, including the issuance of false statements, unauthorized creation of new tokens or dissipation of any assets or intellectual property of SYS Labs to third parties. SYS Labs operates projects such as Rollux, SuperDapp, Pachira, Camada, Luxy and Pegasys among many others, and has been attempting to mislead new investors by misrepresenting these projects as owned by SYS Labs Holdings Ltd or individual directors and officers in SYS Labs Holdings Ltd, while in practice SYS Labs and its entire IP portfolio was created solely using funding from the non-profit Syscoin Foundation in the Netherlands from which the directors of SYS Labs who are simultaneously Board members of the Foundation unlawfully transferred funds.
The unlawful transfer of funds from the non-profit Syscoin Foundation in the Netherlands itself is currently under criminal investigation in the Netherlands, following a criminal complaint that was filed to the Functional Public Prosecutor’s Office in the Netherlands earlier this year. The criminal investigation focuses on the allegations of Theft or Embezzlement from the Foundation, Investor Fraud and Misrepresentation, Forgery of Documents, Money Laundering, Tax Evasion and Participation in a Criminal Organization. SYS Labs Holdings is a party to those investigations, as the primary beneficiary of the illicit flows of funds embezzled from Syscoin Foundation.
Additional investigations and legal processes are ongoing in Canada and Australia, the domicile of some of the individual directors. Given the ongoing criminal investigations in multiple jurisdictions, the issuance of Red Notices by INTERPOL may be activated, facilitating the arrest and extradition of suspects.
Further enquiries can be sent to legal[at]doge.org
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