This is Hae-kwan Lee, the shareholder of BlockChain OS.
I am a small shareholder, owning 2.1%(4,500 shares). I also participated in BOScoin ICO with a significant amount of money. At the beginning of 2016, my two relatives also invested because they trusted the former CEO of BOScoin, Chang-ki Park. However, I cannot help but expressing serious concern with current issues.
As far as I know, from the bottom up, the BlockChain OS is in danger of being ousted from the BOS Platform Foundation in Switzerland. As you know, more than 4,000 people from over 100 countries around the world participated in the ICO on May 10, 2017. BOScoin is not a Korean profit-making company, but a global non-profit organization, and all participants joined the ICO by signing contracts with the Swiss foundation.
The 6,902 BTC collected by the Swiss foundation and about 3,000 BTC previously collected by the pre-ICO are owned by the foundation. BlockChain OS signed the contract to receive money from the foundation to develop and deliver software. They received tens of billions of won from the foundation, including about 3,500 BTC and 3000 BTC of the pre-ICO funds.
But if they say they do not send the output to the foundation, the Swiss foundation will be punished by the Swiss government.
In this case, I’ve heard that the foundation has no choice but to destroy the contract with Blockchain OS and file a lawsuit to enforce them to take all the responsibilities. And they might let other teams in Swiss develop their software. Then, BlockChain OS employees will not get paid, and they will go bankrupt right away. To put it in a simple way, shareholders may lose money. This will be the worst-case scenario for everyone, including the BOScoin holders.
If this happens, most of the blame will be on CEO Choi, but I hope you will work well with the foundation to keep everyone from the unpleasant situation.
It is a pure sophistry that this is all because of the dual governance. Any company, shareholders’ meeting, a board of directors, and management all have different opinions, but they work in harmony. The same is true of the state, of the political parties, of all associations. Governance is complicated for every other cryptocurrency. Ye-jun Choi, the CEO of the Korean foundation said, “If you give your intellectual property to the foundation, that will be ‘breach of trust’. I know that there is few software produced prior to 2016, before the pre-ICO.
I think CEO Choi is being too self-righteous, considering his recent behaviors. For example, he argued that Ye-jun Choi registered the trademark of ‘BOScoin’ under his name. The name BOScoin was made at the beginning of 2016, but he took the company’s asset to his own in December 2016. Isn’t this a perversion of corporate value? Since I am not a legal expert, I am not so familiar with the law, but it is very immoral. If he does not attribute this to the company or the foundation within this year, I will raise the issue as a shareholder.
In October 2017, 80 million BOS owned by the foundation were stolen using false papers, and they divided millions among themselves, and sold them in bulk with high prices. There are many victims.
What’s obvious is if the BOS is not owned by the foundation, it's owned by the company, not by the individual. Ye-jun Choi, who was in a very bad financial situation, is exercising his power since he became a major shareholder by buying 13 percent of the shares from Yong-kwan Choi with 6.8 million won and 6 million won worth of BOS, 5% of Miracle Lab shares with 8.38 million won and 3.3% of Torus share with 5 million won.
Where did the 1.7 billion won in cash come from? Most of the money is from selling BTC and BOScoin. This money came from the community. If the sale was carried out beyond the official compensation limit for board members set at the shareholders' meeting, it would be an embezzlement and I will raise a question about that.
They took such a large sum of money and the company was in debt, and the shareholder value was ruined. The 2017 financial statement shows that a company with a capital of 100 million won has accumulated losses of 600 million won. In addition, the accounting firm gave the audit limit on the fact that there were 2.8 billion won in debt without any documents. As a shareholder, I can’t stay silent anymore. Where did all that money go?
I heard that they spent more than 1 billion won on hiring lawyers from Kim & Chang. Unfortunately, it was mainly for the fight over corporate governance. This is not a lawyer's expense for a company or a foundation, but for an individual, and should be reimbursed for breach of trust. Shareholders are infuriated about this.
I was also told that executive Myeong-San Jeon bought his books in bulk (at least tens of millions won worth) and made a profit out of it while spending company money to earn fame.
As a shareholder of Blockchain OS, it’s a shame to witness the current issue. And I will certainly exercise my right as a shareholder to ask responsibility for this. But before that, what’s urgent right now is to find a way not to be ousted from the BOS Platform Foundation in Switzerland.
I will be waiting for any good opinions from BOScoin participants.