Envion Legal Battle: The Latest Swiss Crypto Bust
The cryptocurrency industry has been praised for all that it has offered, but at the same time, that doesn’t mean that it is without its problems. To the contrary, the industry has recently been mired in legal battles due to various accusations. One of the most recent legal battles revolves around Envion, a well-known German blockchain startup. Interestingly enough, the legal battle didn’t start from the outside – as in, from a regulatory authority or a third-party, but from within. Envion’s founders began legal proceedings against the startup’s CEO.
Envion is recognized for its production of cryptocurrency mining containers that are powered by renewable energy. The founder of the team behind the containers, Michael Luckow, is the individual behind the legal proceedings and not only is he suing the company’s CEO, but also its shareholders.
Luckow and those in his team claim that that the CEO secured a majority stake in Envion, that he has breached his contractual obligations, and has failed to communicate properly with company personnel, thereby leaving the company essentially paralyzed. Despite what most expect, the dispute isn’t due to an issue with cryptocurrency or blockchain themselves, but due to breach of contract.
Further, the legal issues have disrupted more than the company from the inside, they have put projects to a halt as well. For example, after the company’s Initial Coin Offering (ICO) raised up to $100 million with a plan to create mobile blockchain data to be installed on on-site power plants, the project was put on hold as legal proceedings were instituted.
There are several allegations against the company’s CEO that have halted the company’s continued development and moreover, the CEO has yet to deny the allegations. Rather, reports indicate that he finds the allegations against him justified. At this point, the company is left without its ICO funds which are meant to propel the work and a result, the parties are requesting that the court resolve the dispute and to determine who has a right to the funds – the CEO or the company.