Envion AG, the issuer of a $100 million is in trouble with the Swiss Financial Market Supervisory Authority. The Swiss FINMA has announced the launch of proceedings against Envion AG.
The press release by the Swiss FINMA has revealed the intent of the regulator to enforce proceedings against the ICO issuer. This announcement comes in light of the fact that the Swiss regulators have come across incriminating evidence. The FINMA has reasons to believe that Envion AG has breached financial market law with their Initial Coin Offering. This is a result of the company accepting public deposits for the ICO of the EVN token.
Investigations carried out by the FINMA have revealed that Envion AG has accepted public funds of over $100 million. With over 30,000 investors on board, they’ve promised them EVN tokens in a bond like form.
Envion AG Making Headlines for Second Time
This is the second time Envion AG has made its way into headlines this year. The whitepaper launched by the company starts off with the legal disclaimer. It states that the US Securities and Exchange Commission and the Swiss FINMA have not approved investments. It’s not just these two major financial authorities. No financial authority has approved the investment into their tokens.
That being said, the disclaimer adds that the token can is identifiable as a security. The ICO promises holders of the tokens with profits resulting from mining operations. That means the token is also subject to regulations under the US securities laws. The disclaimer adds that the ICO is compliant with said laws. It restricts US citizens and green card holders from access to the category of accredited investors. This is in compliance with Rule 506 (4) of the US Security Act Regulation D.
The Swiss Financial Market Supervisory Authority will not be making any further announcements. They want to bring the matter to a conclusion before they elaborate on the whole ordeal.
This is an interesting development considering the current state of affairs. May of 2018 saw the New York Times publish an article about Envion AG. The article elaborated that the creators of the company have been accusing one another of fraud. This has been a result of the founders losing control over their own company.
With the announcement of the Swiss Financial Market Supervisory Authority pursuing proceedings against Envion, things are looking to become even more interesting. The result of the FINMA inquiry remains to be seen.
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