Swiss FINMA Opens Investigation Against Envion AG’s Blockchain Startup ICO
New Investigation By Swiss FINMA Against Envion AG For Allegedly Breaking Financial Market Rules
The Swiss Financial Market Supervisory Authority published a press release this month to let the public know about an investigation that is currently underway. This investigation would address concerns with a new blockchain startup named Envion AG, who may have broken substantial market rules already, even with their initial coin offering (ICO).
Envion was successful in raising up about $100 million during their ICO, but that seems to be in violation of the regulatory rules in place. According to the report, they accepted public deposits to purchase the EVN tokens, though these types of transactions are not allowed under the current regulations in the country. In the press release from FINMA, it says, “Investigations carried out by FINMA to date indicate that, in the context of its ICO, Envion AG accepted funds amounting to approximately one hundred million francs from more than 30,000 investors in return for issuing EVN tokens in a bond-like form.”
This is not the first problem with that the startup has had. In fact, some of the problems come from internal issues between the executives, who have been accusing each other of multiple transgressions against the brand.
In a report from the New York Times in May, the publication stated that Chief Executive Matthias Woestmann has created extra tokens, which were meant to be a part of a money grab. However, the founders had a different story, saying the Woestmann had taken over the entire firm, violating his contract.