MediChain originally had extremely ambitious promises – they endeavoured to literally save lives through blockchain and crypto. They proposed a platform that would enable users to have unrestricted, decentralised access to their medical records and history. Quite simply, they planned to disrupt a trillion-dollar medical industry and go face to face with the medical insurance markets by ‘permitting users to gain access to specialists anywhere, regardless of the payer network or EMR used.’
Today, the company has nothing to show for the 20m USD raised in their ICO. They haven’t released any working product, prototype or MVP, the token hasn’t been released to exchanges, and there is no sign of any development having been done in the 15 months since the ICO was finished.
This class action is accepting class members
To put it clearly: MediChain took in 20m USD in ICO funds and have nothing to show for it. They failed to release even a concept of their product and have ceased any real updates to their investors. Their social media channels are dead, with barely any followers, and no interactions between the team and their investors. Coincidentally, even the team itself has become disassociated with the project – out of ten staff members present on LinkedIn, only one (the CEO, Mark Baker) is still present with the company. The vast majority have left the company, mostly between May – July 2018, immediately after the end of the ICO. This is a massive red flag.
This ICO was registered in the UK, but the company itself is not – despite being fronted by a British CEO. This company is registered only in Switzerland, as Swiss MediChain AG. Strangely, this registration took place in April 2018, one month after the commencement of the ICO. The registered address of this company corresponds to that of 326 other companies, according to Moneyhouse.ch. The company has also apparently been registered to a “Shankar Peerthy”. This name is associated with countless companies, according to Shabex: https://www.shabex.ch/en/pe/pub/peerthy_shankar_82567122.htm.
The registered addresses of their offices, as touted by the website, show nothing but a shopping centre and an internet-café. There is nothing tangible related to this company, and it was founded for the sole purpose of this ICO.
Further, MediChain is almost a carbon copy of the MEDICALCHAIN project, which flaunts the exact same premise, entering the scene a mere month before MediChain arrive. It’s worth noting that MedicalChain performed much better than MediChain and bears no red flags. Since the ICO, MediChain made a promise that unsold tokens would be burned to ensure they ‘couldn’t affect the value of the token’, but no such burning seems to have taken place.
If it were ever to be released, the token was proposed to be used for ‘research program voting’, ‘fees for medical data storage and transfer’, ‘discounts’ and ‘data services’. However, considering the platform is non-existant and the token remains unreleased, there is effectively no utility here.
Further, the team announced that they would be keeping % of the tokens away from the ICO:
There is absolutely no sign of supervision, management or distribution of the funds raised by the ICO. There have been no updates, no instances of development, and the company’s website is a bland, faceless stream of medical news. There is nothing to show where 20m USD could have gone.
MediChain proposed that the blockchain would be used to record medical data, but this is obviously an impossibility as the project was never even truly conceptualised.
No, this is just an industry-standard ERC20 token.
It’s not enough to say this project failed; it never even got started. The team have all but vanished, cut ties with the company, and have neglected to provide any updates, no matter how small, to their investors. Millions of dollarss in funding have vanished, and the entire project is rife with red flags. This project remains unaudited, unregulated and without any adequate supervision or management.
If you have been impacted financially by MediChain’s ICO, please join this class action with confidence.
Mr. Mark Baker
Mr. Chris Fennell
Mr. Simon Cocking
Mr. Amarpreet Singh
Mr. Mike Raitsyn
Mr. Keith Teare
Inception Date: March 2018
Approx. funds raised: USD 20m
About this ICO:
– Token unreleased
– No tangible product
– No updates
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