Sonic Zhang, who saw the future in the startup, recently claimed that the company has no funds, and all the employees have quit. He wrote in his blog that he learned about the problems from the co-founder of the company, Gregory van den Bergh back in July. According to Zhang, Bankorus ran out of cash because the second round investors pulled their funds.
Sonic Zhang further wrote in his blog that earlier this year, Greg informed him that everything is going smoothly, and the startup has raised another $10 million in a second equity round. But in July Greg told him that that, the second-round investors pulled out and the company has no cash left. Greg also told him that token holders don’t have any legal claims over this based on the agreements they signed.
Overstock itself is in deep water as the company lost its CEO Patrick Byrne in August, and the very next month met with a lawsuit alleging securities law violation.However,
Zhang plans to take the startup further.