CLOUDTOKEN – INTERNATIONAL PROCEEDINGS

12-05-2020
/ Maciej Grzegorczyk

CLOUDTOKEN – INTERNATIONAL PROCEEDINGS

Update 23.06.2020

According to the information we have collected, as well as in connection with conversations with the Prosecutor’s Office in Taiwan earlier this week, we inform that on June 17, 2020, at a media briefing in Taipei, Taiwan, a Taiwanese representative of the People’s Party Ann Kao (高 虹 安) summoned an investigation into the Cloud Token case, also indicating that law enforcement agencies should arrest Ronald Aai. According to information obtained by our Law Firm, it is where the decision-makers in the Cloud Token case are currently based, and the notification will be addressed to, among others, the Supreme Prosecutors Office of Taiwan. In addition, in the failure to resolve the dispute amicably and in the absence of a response from the decision-makers, notice will also be sent to the Australian Securities and Investments Commission, the Attorney General Chambers of Singapore, the Attorney General Chambers of Malaysia, the Office of Public Prosecutions Victoria, the Office of the Solicitor General of Philippines and the US National Central Bureau Interpol, Financial Services Commission FSC House in Mauritius.

 

At the same time, on the basis of conversations with the Prosecutor’s Office in Taiwan, we have obtained information that, as of today, the proceedings are pending and are at the preparatory stage. Together with the Prosecutor’s Office, we agreed that the list of victims, together with the documentary evidence and the Cloud Token notice, will be sent to the Prosecutor’s Office in Taiwan in July this year.

 

In view of the above, we inform you that you may report to the case until 10 July 2020. Afterwards, the list will be definitively closed, but it will still be possible to file a second round of supplementary notification, except that after 10 July the costs of conducting the case will be higher (PLN 369 gross) due to the cost of international shipments.

 

Update 16.06.2020

Due to many requests, the deadline for application has been extended to 24.06.

 

Update 04.06.2020

On 29.05.2020 we completed the process of completing the notification (first version) with attachments and commenced the process of negotiations with the Cloud Token project decision makers, including primarily with SHEAU YEAH AAI (also acting as RONALD AAI). We prepared a cover letter with information on his possible location, as well as other people associated with the Cloud Token project, also indicating possible links between RONALD and his family members. We presented an opportunity to arrange a meeting to determine the terms and conditions of repayment to the Users. We have also indicated that in the event that an amicable settlement of the dispute is not possible, full notice will be given to the relevant authorities, including but not limited to Australian Securities and Investments Commission, Attorney General Chambers of Singapore, Attorney General Chambers of Malaysia, Office of Public Prosecutions Victoria, Office of the Solicitor General of Philippines, Supreme Prosecutors Office of Taiwan, and to the public: US National Central Bureau Interpol, Financial Services Commission FSC House in Mauritius.

At the same time, we would like to inform you that the attachments have been anonymized in such a way that at the amicable stage it is not possible to verify which Cloud Token User is present in this process.

The notification is still being completed on an ongoing basis with regard to new applications. In the event that the decision-makers do not make contact with regard to the documentation sent through the established methods of remote communication, the complete notification is planned to be sent on 17 June 2020 at the latest.

 

Update 18.05.2020

On 18 May 2020 we started the process of completing the documentation. As long as the information on the website remains unchanged, you can report to the case as described in the information below. At the same time, we would like to inform you that from now on, applications that are Incomplete and do not include confirmation of the fee or power of attorney in ONE e-mail will be rejected.

 

 

Dear Sir or Madam,

 

As a Law Firm, we initiate cases in the scope of conducting an international procedure including preparation of a strategy to recover funds from the CLOUD TOKEN project. Due to a large number of inquiries, below we present the current status of the proceedings, with information about the possibilities of joining the case.

 

We are currently in the process of final verification of the project, in respect of legality in the countries of occurrence and physical activity. The verification of the documentary material has already established at this stage that:

 

  1. CloudToken did not properly inform its Users about the investment risk in accordance with international regulations;
  2. The lack of acceptance of the Terms and Conditions by the User in an explicit manner;
  3. Lack of appropriate confirmation by the User that he is aware of the investment risk and loss of the right to withdraw from the agreement;
  4. CloudToken conducted investment activities without the required permission. Acting as CLOUD TECHNOLOGY & INVESTMENTS PTY LTD with its registered office in Australia, it informed the Users about its ASIC certificate – such certificate is obtained by making a unilateral declaration of intent (by CloudToken) without verification by the Australian regulator. Such verification takes place within a period of up to 12 months from the moment of submitting an application for entry (and this is the certificate – the application for entry itself);
  5. The expressions in respect of which information was provided to the Users that CloudToken trades in Users’ funds and charges them with risk – investment activity without permission;
  6. Mistakes and defects in the Terms and Conditions:
  • No verification of the Users;
  • Lack of information about the Service Provider and the procedure of communication with it;
  • Incorrectly determined age of maturity of the User;
  • Extension of the liability of the User towards third parties with whom the Service Provider cooperated;
  • Exclusion of the Service Provider’s liability by indicating that the services are not completely safe, by constructing an abusive clause – a clause prohibited by law and therefore invalid;
  • Lack of specified rules of functioning in the Affiliate Program.

 

After the completion of all the information, as well as after the completion of the attachments and the list of the injured persons, our Law Firm will conduct the following activities:

  1. Performing sworn translations of the necessary documentation;
  2. Preparation of an application to international services (including INTERPOL and the Public Prosecutor’s Office within the scope of the jurisdiction of the entity’s registered office and owners – privately);
  3. Trying to resolve the case amicably;
  4. Contact and cooperation with international services in the event of lack of settlement, including contact with the regulator in Mauritius, who already warned about CloudToken in 2019.

 

If you wish to join the case, here is a shortened procedure (without excessive formalism) for reporting to the case. The only written document will be the power of attorney that we will need to receive signed. Below is the procedure for full application of the case to us:

 

  1. You will send the complete documents to the following e-mail address: khg-cloud@khg.pl

If you have any questions, please ask them only by e-mail: maciej.grzegorczyk@khg.pl and dawid.jacoszek@khg.pl (sent to one person and another in one e-mail). Please do NOT send applications to these addresses.

 

  1. PAYMENT: Please pay the equivalent amount: 246 PLN gross

TITLE: Legal service – CLOUD TOKEN / YOUR NAME AND SURNAME,

ADDRESS: KHG

THE ACCOUNT NUMBERS:

PLN – IBAN – PL 91194010763146569600000000,

USD – IBAN – PL 84194010763183495500000000; Swift Code AGRIPLPR

EUR – IBAN – PL 811940107631851284000000; Swift code AGRIPLPR

 

  1. DOCUMENTS (OPTIONAL): If possible, please collect documentary evidence (transfer confirmations, transfer screens, application screens) – if you do not have documentation, you can also submit a case.

 

  1. THE AGREEMENT: the Agreement will be POWER OF ATTORNEY, with application in accordance with the procedure. The power of attorney is available HERE. You must print it out and sign it.

 

  1. APPLICATION: The application will be a completed document available HERE.

 

  1. A COMPLETE application sent by e-mail MUST contain:

 

TITLE: CLOUD TOKEN / NAME AND SURNAME

 

  • Signed power of attorney;
  • Confirmation of the gross fee of PLN 246;
  • Project documentation (evidence in the case) packed in ZIP format;
  • Completed case file (does not have to be signed, it is sufficient to fill in the .doc format);

 

The most common questions and answers:

 

1. Deadline for applications

Basically, the deadline is 18 May 2020. After this date it will also be possible, but once we have sent the documentation to the Prosecutor’s Office and Interpol, we will have to submit an additional supplementary notice, and this will generate additional work and time on the part of the authorities who will be dealing with the case.

 

2. What will be the cost of conducting the case?

There is a one-off cost of PLN 246 gross. In the event of recovery, we charge a commission of 7.5% gross. We do not collect any additional remuneration from you during the case. All our conversations with international bodies, correspondence, additional letters – we do everything in the amount of PLN 246.00 gross.

 

3. Why do I have to provide so much data?

Because of the AML regulations, because of the specification of the notice and communication with international bodies. International bodies do not receive anonymous notifications about a crime or about an entity. We need to provide detailed information on the persons involved in the project.

 

4. Why do the power of attorney include a provision “for all other types of proceedings”?

We want to avoid a situation where we suddenly have to ask for a power of attorney from each individual injured person to another authority. If we contact other authorities in the course of the proceedings, we can do so on the basis of this power of attorney, without having to add a specific name of the authority.

 

5. Will I be questioned in this case?

At the stage of international proceedings, injured parties will be represented by the Law Firm in correspondence with Interpol and the Prosecutor’s Office in Australia (these are the two main entities at this stage). Therefore, there will be no individual hearings in Poland at this stage. Such a hearing may be necessary or advisable in the future, when international bodies will be clarifying the case.

 

6. Can I not use the services of a Law Firm, but only submit a notice on my own or by another law firm?

Yes, of course. There is no compulsion to use our services. However, I am convinced that one consistent notification will have “more power” from a practical point of view. Moreover, in my opinion, any law firm will demand a much higher remuneration than we have proposed. In addition, if there are several notifications from individuals, the case will be significantly longer (other signatures, need to merge the case);

 

7. What should be stated in the payments?

The basic amount (capital) paid into the project.

 

8. How to determine what is the value of dispute (how much am I losing)?

Please use simple mathematics. Amount of contribution minus amount of withdrawal (what is important is what was contributed and what was withdrawn).

 

9. What about calculations?

You will definitely not be able to recover the charges. This is typical in that kind of projects. In the event of a court case and the necessity to complete it, it will also turn out for sure that there are probably not enough funds to cover the charges as well. Moreover, the authorities will have a difficult task, given the necessity of verifying and determining the value of the charges. Based on our experience, we use simple and understandable mathematics.

 

10. Can people from abroad apply?

Yes, of course.

 

11. When can the reaction of international bodies be expected?

Please be patient. We do not expect any feedback before the end of the third quarter of this year. Unfortunately, we do not have the tools to speed it up. However, it is important to prepare a reliable notification, with the necessary documentation and description, so that the authorities can understand the specifics of the project.

 

12. Is it possible to amicably recover the funds at this moment?

At this moment we have no information and no contact with the decision makers, despite the verification of the project and after attempts to make contact. At the moment we do not see much chance to resolve the dispute amicably.

 

13. Is it possible to recover the funds individually?

You can report the notifications yourself, however, as indicated, the more files with other signatures in the same case, the longer the response time of the body will be. As far as individual amicable recovery is concerned, in the opinion of our Law Firm, the case is closed, whether individually, in a small group or in a large group.

 

14. What’s the plan for the case now?

The plan is outlined above. We will not inform you of the details at this stage, as this is partly our know-how, but we also do not want to “reveal all cards” to the owners and decision-makers. We believe that the whole concept should lead the decision-makers to a final agreement so that users can recover their invested funds.

 

15. Why do we address the notification to international bodies?

Because of the specificity and size of the project, as well as the huge share of foreign capital (in contrast to the Omega case, for example).

 

16. Why is no collective lawsuit filed in Poland?

Collective lawsuits are good when we know exactly who we should sue and everyone has a similar factual situation, as well as the financial situation of the entity is stable. Here the cases are various, different owners, foreign entity, lack of physical presence in Poland, different leaders, methods of payment and withdrawal.

 

17. Is the Law Firm considering conducting the case in cooperation with the Polish authorities?

If, in the course of international proceedings, the situation becomes clear, we do not exclude the possibility of filing civil and criminal claims in cooperation with the District Prosecutor’s Office, however, for the time being we believe that such a solution is pointless in this case.

 

18. Against whom will the notification be made?

First of all, we make a notice in the case. The authorities need to clarify the whole case on the basis of the facts and evidence gathered. In addition, in the further part of the explanation, we will also indicate the private persons, acting within the owners and decision makers of the project.

 

19. Will leaders be summoned as witnesses or participate in the process?

Not at this stage of international proceedings.

 

20. Are leaders responsible at all?

This depends on what exactly they have done. Criminal responsibility is about guilt – someone must actually commit a crime. Civil liability can be contractual or tortious. It will not be based on contractual liability in this case, as you had a contract with Cloud Token. However, tort liability for the time being depends on the arrangements of international bodies.

 

21. But I would like to sue the leader, may I?

Yes, if you want to open a civil case, you can sue the leader. However, in our opinion, such a trial is very risky at this stage. Due to the specifics of the application, the leader will defend himself by saying that he had no insight into the source code of the application and therefore could not verify whether the calculation and arbitration data was enforceable.

 

22. Can we only agree on a success fee?

No, the lawyer’s code of ethics makes it directly impossible to conduct a fee-based exclusion case.  Moreover, please note that the amount of PLN 246.00 is a small amount, which allows you to obtain current information and take care of the case throughout the whole process.

 

23. Is filing the notice itself payable in terms of court or tax fees?

No, there is no additional fee, nor is there any tax charge for the power of attorney.

 

24. What is the chance to recover the money?

At this stage the Law Firm is not able to determine the percentage of chances of recovering the money.  I will say, however, that in the current situation there are 3 solutions left: either to enter into expensive civil proceedings (not collective, but individual) or to accept the loss of funds or to conduct the case through international proceedings – this is something more than the Prosecutor’s Office. Interpol has much wider possibilities in terms of availability and tools for conducting such cases than any other body in Poland. Interpol has successfully closed many of the so-called BTC mixers, which allowed for the mixing of funds. What is more, no decision-makers or operators or service providers were indicated in this type of projects, and the servers were often located in tax havens – and yet, Interpol led to the closure of several such portals.

 

25. As a Legal Attorney, have I already participated in other projects of this type?

Yes, I know the specifics of this type of projects both from the side of the company and from the side of the injured parties.

 

26. If I had 5 accounts on me, do I have to make 5 charges?

No, in such a case, one application containing these 5 accounts within a SINGLE fee is enough.

 

27. Can I combine my account with a colleague’s, i.e. report the colleague’s account as my own?

We will not verify this, but if it turns out that something like this has happened during the investigation stage, then such a person may have problems with giving a false notice when he or she was not an injured person from the other account. Please do not do this for your own safety. Each person makes a report in their own name. The cost is calculated in such a way that everyone can afford it and at the same time cover our administrative costs.

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