Court In Canton Of Zug Decides To Liquidate Mining Company
The court of the Swiss canton of Zug ordered the closure of the mining company Envion AG due to the alleged holding of an ICO without permission, Handelsblatt Global reports.
The firm was established by Michael Luckow and Matthias Woestmann and positioned itself as an enterprise using environmentally friendly and renewable energy sources for its mobile mining facility. During the ICO in January 2018, the company managed to raise about $100 million from more than 30,000 depositors in exchange for the Envion tokens (EVN) in the form of bonds.
Later, there was a disagreement between the company’s founders, and they began to fight for their rights. Woestmann accused Luckow of issuing the larger amount of tokens than expected and then cut the share of his partner in the business. All this led to a lawsuit.
The Zug court decided to close the company and begin the process of its liquidation, emphasizing the complete absence of any audit or governing board. Nevertheless, the judge’s ruling did not stop the business partners from recriminating and further arguments.
Investors who want to return the funds invested in the company should send a letter to the office of the bankruptcy procedure organizers within a month.
The Swiss Financial Market Supervisory Authority (FINMA) opened the investigation in respect of the Envion ICO back in July 2018. Its main focus was the alleged non-observance of banking rules within the token sale.
As previously reported, the Norwegian authorities will cancel electricity subsidies for bitcoin miners.