https://www.ccn.com/90-million-envion-ico-illegalThe Envion scandal was one of the most dramatic sagas to unfold in the cryptocurrency space, and it’s not over yet.
Swiss regulators have ruled that the crypto mining firm behind the $90 million ICO in 2018 participated in illegal activity. Specifically, Envion AG unlawfully received public deposits from 37,000 investors according to the FINMA regulatory authority.
Based in Zug, the company is now being liquidated, hopefully, to compensate investors.
Delusions of Grandeur
The project started out with great potential. To most onlookers, it seemed like a genuinely promising opportunity in a space rife with half-baked ideas.
A high-functioning cryptocurrency mining unit that users could buy shares in was the basic concept.
With an experienced CEO, solid partnerships, and what appeared to be a working product in production, the stage was set. It wasn’t to be.
The project fell apart after what was described by many as a hostile takeover on the part of Matthias Woestmann, the CEO.
The founders accused Woestmann of squeezing them out of the company and embezzling funds. They set up a website to communicate with investors.
Suddenly a relatively unknown figure, Michael Luckow, seemed to be a crucial member of the team.
Meanwhile, Woestmann accused the founders of printing off 40 million excess tokens (later saying 20 million) and selling them, taking the money for themselves. This is the reason, he claims, that he pushed them out.
The founders accused Woestmann of changing aspects of the ICO prospectus, which appeared to be true.
A complaint was filed in Germany and Swiss regulators also began working on the case.
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