The cantonal court of Zug, Switzerland has put a stop to the operations of cryptocurrency mining firm Envion AG for an alleged unauthorized Initial Coin Offering (ICO).
This stems from a report made by German news outlet Handelsblatt Global.
Envion was set up in Switzerland by Michael Luckow and Matthias Woestmann as an off-grid mining firm that claims to make use of decentralized, clean energy such as hydroelectric and solar to fuel its mobile mining units. Envion reportedly raised around $100 million through an ICO done earlier this year.
However, the project eventually turned into a battle between the two collaborators as Woestmann charged Luckow of generating more tokens than had been suggested. Woestmann conceived a capital increase that diminished Luckow’s share. The dispute led to a court trial.
The cantonal court in Zug has shut the company down and mandated its liquidation, while noting the absence of any auditing function or board. Woestmann, however, continues to charge Luckow of not offering significant data about the ICO, while Luckow states that Woestmann has always sought to push the company into liquidation.
Although Luckow would try to continue fighting for the firm in an effort to save the initial concept, financial supervisors have tapped an investigator to make sure that the liquidation is “unavoidable.”
Envion investors who seek to get their money back would have to first identify themselves in a form of a letter to the bankruptcy office, or else they will not be taken into consideration during the bankruptcy proceedings. In addition, investors must register their claims within a month after the announcement.
The first investigation into Envion’s ICO by the Swiss Financial Market Supervisory Authority (FINMA) started in July. FINMA’s inquiry into the case uncovered that, during its ICO, Envion got approximately 100 million francs (around $100.01 million at the time) from more than 30,000 investors in return for issuing Envion’s native tokens (EVN), “in a bond-like form.”
The investigation concentrated on “possible breaches of banking law resulting from the potentially unauthorized acceptance of public deposits” during the token sale.
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