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Richmond company co-founded by U.S. Olympic hero Apolo Ohno being sued for $50M (U.S.)

Apolo Ohno, his Allysian Sciences co-founder and its managing director are all named in the crypto fraud allegations in the U.S.
Alan Campbell
Alan Campbell
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Apolo Ohno is the most decorated U.S. athlete in the Winter Olympics. A Richmond-based company he co-founds is being sued in a U.S. court for $50M (U.S.)Wikipedia photo

A company headquartered in Richmond and co-founded by decorated U.S. Olympic hero Apolo Ohno is being sued in a Californian court for $50 million (U.S.).

Allysian Sciences, whose global corporate HQ is on Westminster Highway at No. 2 Road, is one of several companies connected to former speed skater Ohno that are named in the suit over an alleged $50 million crypto fraud.

As well as Allysian – a brain and body supplement firm – Hong Kong company Hybrid Trade Limited and Asia Digital Exchange are named in the suit.

Ohno, an eight-time medallist in the Winter Olympics, is personally named in the suit alongside Allysian’s co-founder Rod Jao, its global managing director Eugenio Pugliese and Henry Liu.

In the suit, filed at a U.S. federal court in Los Angeles on Aug. 16, plaintiffs Brian Kang, Skyblock LLC, Mid-Wilshire Consulting LLC, Prasad Hurra, David Kim, Blue Rock Group, David Kwon, Artemio Verduzo and Young Jae Kwon allege that the defendants raised $50 million in digital tokens, and later misappropriated the money raised.

The documents filed at the California Central District Court list a number of allegations, including “securities fraud, negligent misrepresentation, breach of contract, promissory fraud, unjust enrichment, fraudulent conveyance, and the sale of unregistered securities.”

According to the suit, between January 2018 and June 2018, the defendants offered and sold digital tokens and raised around $50 million (U.S.) from investors from around the world, including inside the U.S.

The sale of the tokens, it is claimed, was never registered with the U.S. Securities and Exchange Commission, thus depriving investors of the benefit of the disclosures, required by the American securities laws.

It’s claimed in the law suit that the defendants have “yet to satisfy any of their commitments to investors.

“Defendants squandered and/or misappropriated, and purported to lose by theft, all or nearly all of the approximately $50 million raised through their offer and sale of Hybrid Tokens. Defendants’ offer and sale of Hybrid Tokens was, in actuality, a mere vessel for defendants’ personal enrichment. This is precisely the sort of scenario the federal securities laws were enacted to prevent.”

None of the allegations have been proven in a court of law and the defendants have yet to file a response.

The Richmond News reached out to Allysian for comment, but has yet to hear back.