An ICO conducted by Cryptocurrency Mining Firm Envion AG has led to the Cantonal Court in Switzerland to order for its liquidation after the founders disagreed and ran to the court for assistance.
Envion AG was a mining firm that was crafted out of an idea of mining cryptocurrency on mobile trailers mining units through clean energy. The units were off-grid and to facilitate its mining activities its power was to come from hydroelectric and solar energy. The firm was set up by Matthias Woestmann and Michael Luckow. According to local news outlet Handelsblatt, trouble started at Envion AG after the firm carried out a successful ICO early this year on mid-January and raised $100 million. The successful ICO was followed by Woestmann accusing his partner Luckow of producing more tokens than the number initially agreed upon. From Luckow actions, Woestmann increased his capital which in return reduced Luckow shares leading to more fights. With both partners pointing a finger to the other the fight brewed to the next level resulting in a court trial.
After listening to both sides accusing each other, the court also noted some anomalies. First and foremost the firm had no seating CEO after Woestmann resignation as the board chair. His actions led to Envion AG having no board. In addition to that, the court also noted auditing had not being done on Envion AG. After getting additional information, the court ordered the liquidation of Envion AG. But the accusations between the two continued with Woestmann accusing Luckow of not providing enough details about the ICO while Luckow is accusing Woestmann of pushing for the firm’s liquidation. Besides the court taking a look at Envion AG operations the Swiss Financial Market Supervisory Authority had also launched investigations into the firm’s ICO. Investigations kicked off in July.
Even through Luckow believes in the firm’s concept and is fighting to have it back on track he might not succeed. Financial supervisors have already appointed an investigator to oversee the liquidation process. On the other hand, Envion AG investors will have to practice patience to get their funds back. The liquidation process might take one to two years. Besides that, they have to identify themselves by writing a letter to the bankruptcy office to register their claims in not less than one month after the liquidation order was issued.