Havelock Investments notified Neo & Bee (NEOBEE) holders to day that trading had been halted due to “an increase of abnormal activity” on the LMB share platform. (LMB Holdings is Neo & Bee’s parent company.)
The notification was sent via email, and has yet to be posted to Havelock’s website. Neo & Bee has been marketed as the first “bitcoin bank,” and is currently in the process of opening several branches in Cyprus. Havelock is one of a handful of bitcoin-based stock exchanges.
The Havelock message to NEOBEE investors reads:
According to the local press the company’s collaborators in Cyprus as well as vendors against whom the company apparently has financial obligations are expressing their grave concerns over the developments at Neo & Bee. Company staff who have been contacted to provide some answers about exactly what is going on seem reluctant to make any sort of comment, while some rumours mention delays in the payment of staff salaries.Havelock Investments has been formally informed by the Pass-Through Fund Manager of NEOBEE that the compliance officer of Neo and Bee Ltd has stated that due to an increase of abnormal activity on the LMB share platform, there may be a high possibility of questionable trading activity. While Neo and Bee Ltd investigate the issue further they have strongly recommended that we halt trading and transfers.Havelock Investments has halted the NEOBEE fund and is awaiting further instructions from the issuer.
The most worrying of all is the absence of official announcements by the company, which in the past had been quite frequent and vocal. Things are further obscured by the apparent confirmation that Neo & Bee CEO Danny Brewster, who became a well exposed figure in Cyprus, has left the country.
He has avoided making any official announcements, while a statement attributed to him, is as follows: “My silence is for a very valid and personal reason, all the rumors that are flying about are false and couldn’t be further from the truth. I haven’t moved from Cyprus or anything of the kind. I am temporarily out of the country resolving some big issues that were made much worse by people stating incorrect facts in a public forum.”
Why did Brewster leave Cyprus?
“My reason for leaving was to raise additional capital for the business through the sale of my equity as we had run out of liquidity, I had exhausted all of my own liquidity, too, through directors loans to the company. Every single bitcoin raised and spent is accounted for, any claims of embezzlement are nothing but empty claims with no foundation,” he said.
However, Brewster admitted the loss of bitcoins due to the closure of BitFunder/WeExchange, but he pointed out that he personally assumed that debt of 1,402BTC in order to protect the company.
His departure however is not the primary reason causing concern. The real problem is that the trading of the bitcoin shares of LMB Holdings, which is the mother company of Neo & Bee, has been suspended on the Havelock Investments exchange.
According to Havelock itself, “Havelock Investments has been formally informed by the Pass-Through Fund Manager of NEOBEE that the compliance officer of Neo and Bee Ltd has stated that due to an increase of abnormal activity on the LMB share platform, there may be a high possibility of questionable trading activity. While Neo and Bee Ltd investigate the issue further they have strongly recommended that we halt trading and transfers. Havelock Investments has halted the NEOBEE fund and is awaiting further instructions from the issuer.”
No other details were available, although posts on the Neo & Bee Reddit claim fund managers ThickAsThieves also terminated their contract with NEOBEE earlier today after Neo managers suggested the trading halt.
NEOBEE stocks have been falling in recent weeks, although there was no indication of major issues with the price, the fund management or Havelock until today’s notification.
Source:
http://www.binaryoptionswire.com/something-wrong-neo/
http://www.bitcoinx.com/trading-halted-neo-bee-stocks-amid-reports-questionable-trading-activity/
http://www.coindesk.com/neo-bee-ceo-moves-reassure-investors-following-insolvency-confusion/
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