Envion AG, a crypto-based firm that aimed to combine cryptocurrency mining with green power, has been shut down by the cantonal court of Zug, Switzerland. The company was reportedly dissolved due to an alleged unauthorized Initial Coin Offering (ICO) on November 28, local German news outlet…
Envion AG, a crypto-based firm that aimed to combine cryptocurrency mining with green power, has been shut down by the cantonal court of Zug, Switzerland.
The company was reportedly dissolved due to an alleged unauthorized Initial Coin Offering (ICO) on November 28, local German news outlet Handelsblatt reports.
Envion was established to serve as an off-grid mining company which makes use of clean, decentralized energy (like solar power or hydroelectricity) to power mobile mining units.
The company raised about $100 million in funding through an Initial Coin Offering (ICO) conducted back in January 2018, before being investigated by Swiss regulators for violating securities laws. One of the many criticisms that have been leveled against Bitcoin and other cryptocurrencies in the past is related to the massive amount of power that their mining operations consume. As a startup, Envion promised to make use of two of the hottest trends right now; blockchain technology and ecological investing.
However, the project began to break down due to disputes between its partners, Michael Luckow and Matthias Woestmann, as the latter accused the former of going ahead to produce more tokens than had initially been planned. Subsequently, Woestmann received an increase in capital that reduced Luckow’s share of the company. Not able to reach an amicable agreement, both partners decided to take the dispute to a court, a move that grounded operations in the company.
The Zug cantonal court has now reportedly ordered the immediate shutdown of the firm and its liquidation. Amongst other reasons, the court noted that Envion never had an auditing function, while pointing out that there was no functioning board of directors in place since Woestmann stepped down as chairman.
For investors who participated in its ICO, the court has advised them to verify their identities and file claims with the bankruptcy office, or risk not being considered in the dissolution and bankruptcy proceedings. These claims, according to the report, must be filed within a month of the dissolution announcement, or the concerned investors will forfeit their investments.
Featured image from Shutterstock.
Last modified: January 24, 2020 10:54 PM UTC