Cyprus Issues Arrest Warrant for Neo & Bee CEO Danny Brewster

A warrant for the arrest of Neo & Bee CEO Danny Brewster has been issued in Cyprus.

Apr 11, 2014 at 9:10 p.m. UTC
Updated Sep 11, 2021 at 10:39 a.m. UTC

Danny Brewster, founder and CEO of Cyprus-based bitcoin depositary institution Neo and payment service Bee (known collectively as Neo & Bee), is now wanted by domestic law enforcement officials.

reported that an arrest warrent has been issued for Brewster, who earlier this month was reportedly accused of defrauding customers.

The embattled CEO has been named as a "person of interest" in an investigation of the troubled Cyprus-based bitcoin savings and payment network, and three formal fraud charges have been filed against Brewster, law enforcement sources told the media outlet.

Police may also issue a European warrant for Brewster's arrest.

Trouble grows for Neo & Bee

Neo & Bee is at the center of a growing controversy after its CEO abruptly departed the country earlier this month, reportedly seeking investment to keep the company afloat. Brewster, however, indicated that he would not return following allegations that threats were targeted at his daughter.

The statements by Brewster followed allegations from two customers that they paid €15,000 and €20,000, respectively, for bitcoins they never received.

Problems for Neo & Bee first began when questions regarding the company's solvency were first raised earlier this month.

Neo & Bee's future uncertain

Neo & Bee first opened to a good deal of enthusiasm in the community, with some commentators hailing the opening of the bank-like company as a step forward for popular acceptance of digital currencies.

These problems worsened when tradeable shares for LMB Holdings, the company that owns Neo & Bee, plunged in value on the Havelock Investment exchange.

Brewster, whose exact location is unknown, has said in the past that he plans to sell his equity in the company. It remains unclear whether or not the arrest warrant will change the calculus of any sale of his stake.

Image via Neo & Bee

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
After Armstrong Tweet, India's Crypto Policy Body Says No Contempt of Court Challenge vs. RBI

The Coinbase CEO last month suggested the RBI's "shadow ban" of crypto exchanges violated a Supreme Court ruling.

The Coinbase CEO last month suggested the RBI's "shadow ban" of crypto exchanges violated a Supreme Court ruling.

CoinDesk - Unknown
2
CoinDesk - Unknown
Portuguese Congress Rejects Two Bills Seeking to Tax Crypto

The proposals were submitted by two leftist parties. The government, which also seeks to apply taxes, hasn’t submitted a proposal so far.

The proposals were submitted by two leftist parties. The government, which also seeks to apply taxes, hasn’t submitted a proposal so far.

CoinDesk - Unknown
3
CoinDesk - Unknown
First Mover Asia: Regulatory Attention on Terra Could Change South Korean Trading Environment; Bitcoin Goes Sideways

The founders of two prominent crypto-related organizations said tightened restrictions could make it difficult for foreign tokens to list on Korean exchanges, discouraging projects from trying.

The founders of two prominent crypto-related organizations said tightened restrictions could make it difficult for foreign tokens to list on Korean exchanges, discouraging projects from trying.

CoinDesk - Unknown
4
CoinDesk - Unknown
A16z Doubles Down on Crypto Investments Despite Market Downturn, and NFL Launches Play-to-Earn NFT Game

The most valuable crypto stories for Wednesday, May 25, 2022.

The most valuable crypto stories for Wednesday, May 25, 2022.

CoinDesk - Unknown