Did Wesley Snipes just get roped into a dubious cryptocurrency project? Well, that might very well be the case according to Binance CEO Changpeng Zhao and Michael Arrington, co-founder of TechCrunch.
While both Arrington and Zhao vaguely raised their suspicion without naming any entity or project in particular, the duo was likely referring to a new tokenized $25 million movie fund that the famed American actor is apparently a part of.
Is Wesley Snipes’ Tokenized Movie Fund Tainted?
For those out of the loop, Monty Metzger, CEO at the Liechtenstein Cryptoassets Exchange (LCX), recently confirmed that Wesley Snipes will be collaborating with them to roll out a fully compliant security token offering (STO).
The tokenized fund dubbed ‘Daywalker Movie Fund’ (DMF) will be based on LCX’s homegrown blockchain network and will be used to invest in forthcoming TV shows and movies produced by the Snipes-owned production studio, Maandi House.
On the surface, DMF looks like a legit project based on a seemingly viable business model. There’s no evidence so far that suggests otherwise. However, according to Michael Arrington, Snipes should tread rather carefully while joining any cryptocurrency project started by an organization or entity with a questionable reputation.
Someone needs to tell @wesleysnipes to check references before doing crypto stuff with randos.— Michael Arrington (@arrington) September 10, 2019
It took less than two minutes for the Binance CEO to chip in with his own view of the situation. Zhao responded to Arrington’s tweet by urging people to warn Snipes that he was collaborating with a scammer.
yes, I believe he (@wesleysnipes) is working with a scammer now. Someone should let him know.— CZ Binance (@cz_binance) September 10, 2019
Upon Further Inspection
On a closer look, Arrington and Zhao were probably referring to a recent notification wherein the Financial Market Authority Liechtenstein (FMA) questioned the legitimacy of LCX AG.
LCX AG, the parent company of the Liechtenstein Cryptoassets Exchange, pitches itself as “a Blockchain bank for the new financial world.” However, the FMA alleges that LCX AG doesn’t even have the approval to offer financial services.
The notification dated Sept 5, 2019, reads:
“The Financial Market Authority Liechtenstein (FMA) points out that LCX AG, Vaduz, registration number FL-0002.580.678-2, has not been licensed by the FMA and has not submitted an authorization request to the FMA, and therefore the operator of the website www.lcx.com is not allowed to provide any financial services that are subject to authorization under Liechtenstein law.”
LCX was prompt in issuing a clarification to traders and investors with the promise that the exchange was following all due processes “to establish a compliant and regulated blockchain ecosystem.”