Switzerland?s Cantonal Court of Zug has ordered the Envion AG cryptocurrency mining company to terminate its operations in the country.
The court ordered Envion to shut down its operations for reportedly launching an unauthorized Initial Coin Offering (ICO). Matthias Woestmann and Michael Luckow launched Envion in Switzerland as an offgrid digital currency mining company. The company used renewable power, mainly solar and hydroelectric power to power its cryptocurrency mining rigs. The Swiss crypto mining firm held an ICO that raised roughly $100 million in January this year.
? S?amus Kik (@seamus_kik) November 28, 2018
The court?s ruling was as a result of a dispute between Envion?s founders
Things went south for Envion when as dispute broke out between its two founders. Woestmann claims that Luckow generated more tokens than had initially been agreed on. Woestmann also increased his capital and ended up reducing Luckow?s share. The dispute erupted and eventually ended up in court.
The Cantonal Court of Zug ruled that Envion should be liquidated and the lack of a board or auditing function played a role in the court?s decision. Meanwhile, Woestmann still accuses Luckow of failing to provide vital ICO information. Luckow, on the other hand, has accused Woestmann of always pushing the firm towards liquidation. Luckow is still determined to save the company despite the court?s decision.
?We will continue to use all means available to us to fight against a liquidation of Envion AG. We do not want a liquidation? stated Luckow.
Luckow also added that he and his team have already done as much as they could to prevent a liquidation. He also claims that Woestmann would benefit from a liquidation at the expense of investors.
FINMA has been investigating Envion since July
The Swiss Financial Market Supervisory Authority (FINMA) started investigating Envion?s ICO in July this year. The Swiss regulator discovered that the company accepted 100 million francs from roughly 30,000 investors during the ICO in exchange for its native token, EVN. FINMA?s aim with the investigation was to determine whether any banking laws were breached from public deposits accepted without any authorization during the ICO.
Envion?s investors have been left in an awkward situation following the legal battle. Investors who want to get their money back have to write a letter identifying themselves to the Swiss bankruptcy office.