Austrian doctor and blockchain entrepreneur Julian Hosp is currently facing new challenges with his latest venture, Cake Group. Hosp, who has gained notoriety in the blockchain industry, especially after his involvement in the now-defunct TenX, is again in the spotlight for alleged financial mismanagement. TenX, which raised $80 million in an Initial Coin Offering (ICO) during the 2017 cryptocurrency boom, was regarded as an exit scam by the industry.
The Cake Group Battle
The recent developments at Cake Group, where Hosp is a co-founder and CEO, have raised similar concerns. Cake Group, known for its cryptocurrency investment platform, is undergoing a legal battle initiated by its co-founder, Chua U-Zyn. Chua, also the chief technology officer and shareholder, filed for the winding-up of the company, citing a shareholder dispute.
This application was filed with the High Court on December 1, as reported by The Straits Times, with a hearing scheduled for December 22.
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Adding to the company’s woes, Hosp announced in a blog post on November 14 that Cake DeFi, a part of Cake Group, would be reducing its workforce by 30%, impacting 52 employees in Singapore and Kuala Lumpur. This decision was supposedly made without the consensus of Chua, who opposed the layoffs and criticized the lack of transparency and clear intention behind the move.
Responding to the legal challenge, Hosp claimed that Cake Group is financially stable and solvent, with ongoing business operations and assets exceeding liabilities. He emphasized that the winding-up application is based on internal disagreements rather than financial incapacity.
The Lyoness & TenX Story
Hosp’s background adds a layer of complexity to the situation. Known for his involvement in the multi-level marketing (MLM) scheme Lyoness, where he was a top leader, Hosp’s transition into the cryptocurrency space has been controversial. The MLM scheme Lyoness has been investigated by law enforcement agencies and sentenced by courts in several jurisdictions. Lyoness was considered a pyramid scheme that offered its members cash-back programs, among other things. Lyoness has since changed its name several times and has disappeared.
He celebrated his entry into the crypto world as a co-founder of TenX despite joining just before its ICO and not being an original founder. His departure from TenX in 2019 led him to co-found Cake Pte Ltd with U-Zyn Chua.
Despite the challenges, Hosp remains committed to his role at Cake Group and insists that the company’s day-to-day operations are unaffected. This ongoing dispute highlights the volatile nature of the cryptocurrency industry and the complex dynamics within blockchain enterprises.
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