January 19th, 2021 – Douglas, Isle of Man
Several months ago, I started on a path to take over the CasinoCoin Foundation and lead on a new strategy to drive new value into the coin and do some genuinely awesome business developing amazing new technology with great partners.
During these months it has become apparent to me how badly managed the Foundation had been run by its Founder. This has led to a number of challenges, which I outline below;
Firstly, the Foundation and Operating Company registered in Malta have been left with considerable amounts of debt – I was not aware of the scale of this when I said that I would take over – of seven figures. Mind-blowing amounts that have the potential to cripple us from the get-go on our new journey. Some of this debt is to previous members of the Foundation and whilst many partners have agreed to waive their debts, some of those members have not and despite everything that has happened, still wish to receive more money from the successes that I will be creating. I cannot agree to take over the Foundation in its current position with so much debt relating to the Operating Company, as the Foundation may ultimately become liable for these in the future. These are just the debts that we know about and there is nothing to say that additional debtors won’t come forward too.
As a way around this, it was decided that the best thing to do was establish a new ‘Foundation’ and Operating Company in the Isle of Man, where our new base will be. As part of this, I worked with the lawyers and former members of the Foundation to secure the CasinoCoin brand rights and intellectual property from the existing Malta foundation. During this, it transpired that not only were the lawyers already owed funds by the Foundation but that KNOX Limited in the Isle of Man (KNOX) believed that they may have an entitlement to the brand due to funds they gave to the Foundation as a loan back in 2017. This loan was previously repaid in return for a substantial amount of CSC on a promise of increased future value. Given the actions of certain former individuals that were involved with the Foundation, they now believe that this loan was not repaid in good faith and therefore they may have a right to the CasinoCoin brand and IP as a security. A deadline was set for last Friday (15th Jan 21) for all parties to agree to what I needed to progress forward, which didn’t transpire. It is therefore impossible for us to proceed further under the CasinoCoin name as it would be possible for either KNOX or a previous member of the Foundation management to make a claim against us for doing so without their consent, further crippling our plans to move forward. I should make absolutely clear that at no point is the network itself compromised and we currently have full control of this and its integrity.
As of now, we have a new strategy on moving forward. We will establish a new chain – the Eminence chain – where existing CSC holders will be able to swap their existing coins for the new Eminence coin on the new chain. As the new chain will be registered with the Isle of Man Financial Services Authority through the Designated Business Act, we will be required to collect Know Your Customer (KYC) and Source of Coins (SOC) information in order for you to engage in the swap. If you are unable to satisfy our anti-fraud and anti-money laundering obligations, we may not be able to facilitate a request for a swap on a case by case basis. We expect to be live with the new chain within 30 to 120 days, further details on the new chain and how it will work will follow in due course and the CSC network will remain functioning until such time that we are satisfied that eligible holders have participated in the swap.
An offer has been made to KNOX to continue to maintain the CSC network beyond the swap – on behalf of the Foundation – but we do not have any clarity on their position currently.
These decisions have not been taken lightly. Existing CSC partners and potential new partners are wanting to work with us, but they would not work with ‘CasinoCoin’, given the issues of the past few months. There are some exciting projects in the pipeline for the new Eminence chain – including with previous CasinoCoin partners – and I hope to share further details on these soon.
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