The Swiss financial regulator has opened proceedings against the German-Swiss cryptocurrency venture Envion that dissolved into bitter in-fighting and claims of fraud shortly after raising $100 million from an initial coin offering (ICO) crowdfund.
This content was published on
2 minutes
When not covering fintech, cryptocurrencies, blockchain, banks and trade, swissinfo.ch's business correspondent can be found playing cricket on various grounds in Switzerland - including the frozen lake of St Moritz.
As reported by swissinfo.ch in May, a row broke out between the company’s founders and its chief executive with both sides accusing the other of foul play. CEO and former German television news journalist Matthias Woestmann said that millions of extra tokens had been issued without authorisation and sold for illicit profit.
However, he has also been accused of illegally wresting control of the company from the original founders. Complaints were lodged with FINMA and the German authorities, leaving investors unsure of whether they would get their tokens or their money back.
EnvionExternal link got off the ground in Berlin and in October set up its headquarters in the Swiss town of Baar, in the heart of canton Zug’s Crypto Valley, to take advantage of Switzerland’s favourable regulatory environment. The company proposed making portable environmentally-friendly cryptocurrency mining units.
FINMA has made it clear in the past that it will not tolerate malpractice in the burgeoning ICO and crypto industries. Last year it shut down three companies behind illegal cryptocurrencies and said it was investigating other suspected cases.
In February it issued guidelines to regulate the ICO industry, which demarcated which tokens represented securities.
According to a recent report by PwC, Switzerland attracted $1.46 billion in ICO funds in 2017, a sum that swelled by a further $456 million between January and the end of May this year.
This content was published on
The row bears some of the hallmarks of the recent Tezos scandal that brought unwanted global attention to the self-styled Crypto Valley in canton Zug. In this case the key actors are German and the dispute may end up in the Berlin courts. But the fact that the company was established in Baar last October…
Protein in abdominal fat could help shape obesity treatment
This content was published on
The study analysed fat cells from different locations in the body, and found that those in the abdomen have unique properties.
North African asylum claims fall after rapid Swiss processing
This content was published on
The accelerated procedure, now out of its test phase, has resulted in a significant drop in applications from North African countries.
This content was published on
The artist's song "The Code" focuses on their journey as a nonbinary individual. It is one of the favourites to win this year's contest.
Swiss climate activists block vehicles near Gotthard tunnel
This content was published on
Around ten climate activists briefly blocked the A2 motorway near the northern entrance of the Gotthard tunnel on Thursday.
Watches belonging to Michael Schumacher up for auction
This content was published on
Schumacher's family is auctioning off eight rare watches from his collection in Geneva. The Christie's auction will take place on Monday.
Joya Marleen and Baschi named best solo acts at Swiss Music Awards
This content was published on
St. Gallen singer Joya Marleen and Baschi from Basel were named artists of the year at the Swiss Music Awards 2024 on Wednesday night.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Switzerland tarred by fresh crypto scandal
This content was published on
The row bears some of the hallmarks of the recent Tezos scandal that brought unwanted global attention to the self-styled Crypto Valley in canton Zug. In this case the key actors are German and the dispute may end up in the Berlin courts. But the fact that the company was established in Baar last October…
This content was published on
Finma has seized or blocked CHF2 million ($2.07 million) linked to Quid Pro Quo Association, which issued the E-Coins, along with Digital Trading and Marcelco Group. It has also launched bankruptcy proceedings against the trio of firms. “These three legal entities accepted funds amounting to at least four million Swiss francs from several hundred users,”…
This content was published on
The Swiss financial watchdog has published guidelines on digital currency fundraisers under which it will regulate some ICOs.
Offshore havens challenge Switzerland for swelling ICO funds
This content was published on
Blockchain start-ups obtained some $13.7 billion (CHF13.6 billion) in ICO capital until the end of May this year, according to a report by audit firm PwC and the Zug-based Crypto Valley Association. This is nearly double the total of all other funds raised until the start of this year. Companies raise start-up capital through this…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.