Thursday , November 14 2024
Home / SNB & CHF / Watchdog confirms illegal activity by cryptocurrency firm Envion

Watchdog confirms illegal activity by cryptocurrency firm Envion

Summary:
The company is in the middle of bankruptcy proceedings handled by the Zug bankruptcy office. An investigation by the Swiss Financial Market Supervisory Authority (FINMA) has revealed the that Zug-based cryptocurrency venture Envion unlawfully received deposits from at least 37,000 investors. Envion unlawfully accepted over CHF90 million (.5 million) in its Initial Coin Offering (ICO) without the necessary statutory licence, according to a statement by FINMAexternal link on Wednesday. More than 37,000 investors purchased its EVN tokens by making payments in US dollars as well as Ethereum and Bitcoin cryptocurrencies. FINMA judged that accepting these payments qualified as public deposits under the Banking Act,

Topics:
Swissinfo considers the following as important: , , , ,

This could be interesting, too:

Frank Shostak writes Assumptions in Economics and in the Real World

Conor Sanderson writes The Betrayal of Free Speech: Elon Musk Buckles to Government Censorship, Again

Nachrichten Ticker - www.finanzen.ch writes Bitcoin erstmals über 80.000 US-Dollar

Nachrichten Ticker - www.finanzen.ch writes Kraken kündigt eigene Blockchain ‘Ink’ an – Neue Ära für den Krypto-Markt?

Watchdog confirms illegal activity by cryptocurrency firm Envion

The company is in the middle of bankruptcy proceedings handled by the Zug bankruptcy office.

An investigation by the Swiss Financial Market Supervisory Authority (FINMA) has revealed the that Zug-based cryptocurrency venture Envion unlawfully received deposits from at least 37,000 investors.

Envion unlawfully accepted over CHF90 million ($90.5 million) in its Initial Coin Offering (ICO) without the necessary statutory licence, according to a statement by FINMAexternal link on Wednesday.

More than 37,000 investors purchased its EVN tokens by making payments in US dollars as well as Ethereum and Bitcoin cryptocurrencies. FINMA judged that accepting these payments qualified as public deposits under the Banking Act, which requires a banking licence.

Besides a lack of a banking licence, FINMA also found that EVN tokens were not issued under the same conditions to all investors. There was also no international audit unit as required by law.

The company is now in liquidation and FINMA will not be taking any further action. The details of the bankruptcy proceedings could not be revealed as they are handled by the Zug bankruptcy office.

Responding to FINMA’s analysis, Envion’s former CEO Matthias Woestmann said that the regulator had not identified any misappropriation of the assets entrusted to the company. Woestmann considered that the end of the proceedings against him was a “clear signal” and that the board of directors was therefore “totally exonerated”. He hopes that the Zug bankruptcy office will “do everything possible” to return the money to investors.


Tags: ,,
About Swissinfo
Swissinfo
SWI swissinfo.ch – the international service of the Swiss Broadcasting Corporation (SBC). Since 1999, swissinfo.ch has fulfilled the federal government’s mandate to distribute information about Switzerland internationally, supplementing the online offerings of the radio and television stations of the SBC. Today, the international service is directed above all at an international audience interested in Switzerland, as well as at Swiss citizens living abroad.

Leave a Reply

Your email address will not be published. Required fields are marked *