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The truth in response to Mr Ehrlich’s fictitious allegations

November 13th, 2018 No comments

Hilly Ehrlich has, over the past 5 months, subjected me personally to an onslaught of emails, calls and meetings instigated by him with the sole purpose of his and his friends’ personal financial gain.  These came to a head on Friday morning with the release of an article on a supposedly independent industry blog that simply puts Ehrlich’s allegations forward as the truth with no attempt at any pretence of journalism or fact checking.

Firstly, I strongly and vehemently refute each and every one of Ehrlich’s allegations. Not a single allegation he has made has any factual basis and they constitute harassing and libellous behaviour on his part.  I have not and will never disburse Foundation funds or assets for any reason other than in pursuit of the goals as set out in the White Paper.  We have released software and will continue to do so, in line with the stated aim of the Foundation and any funds used are deployed solely in the pursuit of these goals.

I have evidence of all of the above together with detailed and substantive responses to every single one of his allegations – these are with our lawyers and they are advising on the correct legal action.

Over the past 10 days I have been dealing with a demand letter from Hilly’s Estonian lawyers.  It threatens to go and lodge criminal complaints in Estonia unless I pay him EUR 500K of foundation funds. I am simply not prepared to do that.  I offered to respond with detailed responses to their complaints, but they were not interested in hearing any responses – just in supplying the bank details so that I could settle the money to them.  The end result of my refusing to bow to this blackmail was the article in Calvin Ayre and whatever complaints they may have lodged with the police.  I am quite prepared to defend each and every one of these complaints and will of course deal with this in the correct and legal manner. Bear in mind that anyone can allege anything and lodge a complaint with the police and then say they have done this – this action lends no validity to their claims.

The article in Calvin Ayre has left my reputation tarnished and caused severe damage to the BETR Foundation – all without any balance or presentation of the other side of the story. Quite how any blog masquerading as a news source could publish such one-sided stories is beyond me.  But anyway – here it is – the truth.

I have known Hilly for many years.  Indeed, I regarded him as a friend.  We went on a trip to Jerusalem together. I rode camels.  We did stuff that friends do.

In 2016 I started thinking about how the sports betting industry could benefit from the new smart contract blockchain systems such as Ethereum and how I could apply these new technologies to bring out some cool technology.  I wrote a basic white paper on sports betting and showed it around some of my industry friends.  I talked about my ideas in social gatherings – some of which Hilly was in.

In 2017 I witnessed the growing interest in ICOs.  Surely with a decent idea and prototype technology I could also raise some funds and pursue my blockchain ideas?  I got out the white paper and started refining, building the token model and putting together a game plan to put sports betting onto blockchain.  I shared my ideas with Hilly and he asked to be included – said he could raise all the money.  It all sounded like a good idea – we agreed a piece of the founder tokens for him and we moved forwards.  By the end of the early stage seed round he had raised $110K and I had brought in $340K so we were ready to put the ICO marketing and machinery in place and go for the main raise.  Hilly was also a part of the main raise – bringing in about 20% of the overall funding. Everything was great.  We concluded the ICO in January 2018 and I set about putting together the business.

My initial intention with regard to development was to have an outsourced partner (in Estonia) who would develop the product.  About 2 months into that development I took the view that this was not going to work and had to terminate the agreement and put in place a team that I could run.  I have developed software for the past 30 years so I knew I could deliver.  I had no confidence that the Estonian team was delivering.  It was the smart choice in terms of delivering on our ICO promises. The downside was that I would personally be far more involved in development and would have less time for other aspects of the business, but I felt that this was the right path.

I was lucky to tap into talented engineers who had worked with me previously and together we established a great team.  I wrote a significant part of the code, and we were able to get a product out for the World Cup which was our stated goal. We also put in place some supporting resources to take care of other aspects of the business.

Unfortunately, despite achieving success for the business, Hilly started to turn against us.  He had other ideas in mind it would seem, both for the product direction – in this regard we followed the timeline and published goals in the white paper – and for the company which he seemed to think did not require any staff.  Hilly has no idea how to create a successful software product – has never done so in the past. Which is why I took responsibility for delivering our product – delivering successful software products is not new territory for me.

When the crypto markets suffered a bear market in the middle of this year our token price was hit – along with pretty much all others and the major cryptos such as Ethereum (which we had taken in significant quantities during the ICO).  Token holders were suddenly in a position where the price which had traded north of the 10c ICO price was plummeting.  Believe me – I was as unhappy as anyone with this, but it was out of my control.

Hilly’s solution was seemingly to bail out his friends at the expense of other token holders. It has come to our knowledge that he has used Foundation assets, to which he had access, in order to do this and we are going to turn to the police with this evidence.

Hilly accused me of many things – some of which are aired in the Calvin Ayre article.  They are all simply fabrications – I think sometimes he believes his own story – regardless of the truth.

There were legal letters sent back and forth – I offered on many occasions to sit with Hilly but he was not prepared to even meet without a guarantee before meeting that I would “make reparations”.  I refused to meet with a pre-ordained outcome that I believed was fundamentally wrong. In all these discussions I consulted with and agreed responses with the Foundation board and stuck to open and proper governance – a process that Hilly appears to have no idea about.

I will continue to fight to do the right thing for all token holders.  We have a tremendous product and much more to do and I truly believe that the token price will recover with usage and utility which is what it needs to do – to move out of trading land to where the price reflects its real utility. I am immensely proud of the product and the great team who have put it together. Stay strong BETR!

Categories: Arthur, Gambling Tags: ,