A court in Zug, Switzerland, has decided to shut down a cryptocurrency mining initial coin offering (ICO) by the name of Envion AG. The cryptocurrency project marketed itself as an “off-grid mining project”, and had raised over $100 million through its ENV tokens. The ICO was one of the most successful in history. The court is now ordering for the liquidation and closure of the company.
Envion was established in Switzerland and meant to use clean energy to mine cryptocurrency, such as hydroelectricity and solar power. However, issues arose in May of this year when the CEO of Envion, Matthias Woestmann, claimed that some members of the founding team, and specifically his partner, Michael Lucknow, had illegally generated millions of extra tokens were created.
In a move that further confused investors, Woestmann seemed to walk back some of his claims, but only to an extent, days later. He told CCN: “In general, I would say that the German judicial system will bring light into the suspected large-scale fraud.”
Woestmann did not stop at just accusations but actually planned a capital increase specifically to dilute Lucknow’s shares in the company. In addition, in July, the Swiss Financial Market Supervisory Authority (FINMA) officially launched an investigation into the ICO, suggesting that it might not have even been completely “authorized”.
The EVN token is still trading and is currently sitting at a price just above 6 cents, with a market capitalization of around $6.7 million dollars as of press time.