The Shocking Downfall of Bankorus

In a tale that seems almost ripped from a financial drama, the blockchain wealth management startup Bankorus has found itself without a dime to its name. Sonic Zhang, the largest shareholder and one of the early cheerleaders for the company, broke the news on October 6 and, spoiler alert, it’s not a happy ending.

Cash Flow Problems: The Dark Cloud of Startups

Zhang, who invested over $1 million, revealed that the firm is officially out of cash. Talk about a punch to the gut! According to Zhang, the issues ballooned after potential second-round investors pulled their funding faster than you can say “institutional backing.” Who needs investors, right? Oh wait…

The Ripple Effect of Investor Withdrawal

It’s one thing to have a rough day at work, but when your whole operation goes belly up, you know you’re in trouble. Zhang stated that his epiphany about Bankorus’s dire situation came in July when he was informed by co-founder Gregory Van den Bergh. It begs the question: If the investors had stayed put, would we be reading a different story? Maybe. Maybe not.

From ICO Dreams to Financial Nightmares

Bankorus, which was previously known as MICAI, set out on an ambitious journey to launch its initial coin offering (ICO) back in 2018. Just to set the scene, this was right before the entire crypto market experienced its own version of the ‘Great Depression.’

Hopes Dashed by Teething Troubles

In a last-ditch effort, Overstock’s platform tZero decided to extend a lifeline via a transition to a security token offering (STO). According to Zhang, things were actually looking up early in 2019 until unexpected complications threw a monkey wrench into the works. Suddenly, dreams of blockchain wealth management faded faster than last season’s fashion trends.

What Remains: A Dreary Investment?

Fast forward to now, and the only tangible asset left in Bankorus’s vault is a $1 million investment in Lithuania’s Rato Credit Union. Quite the trophy, huh? However, Zhang warns that token holders are left with nothing but a piece of paper, as they have no legal claims over this asset based on the agreements they signed. Note to self: Always read the fine print—like, really read it.

Overstock’s Turbulent Waters

If Bankorus’s saga were a TV series, it would now be in its most dramatic season. The misfortunes extend to Overstock itself, which recently saw the departure of its high-profile CEO, Patrick Byrne, leaving many to wonder if this is just the beginning of a long list of troubles. To add to their misery, a recent lawsuit has them questioning their own compliance with securities laws. It almost feels like a rock band after a bad breakup—lots of drama, little cash.