Swiss Financial Watchdog FINMA Slams the Door on Envion AG Due to Illegal ICO

As expected of any large industry, the crypto sphere is littered with both the good and bad eggs. Unfortunately, the bad eggs sometimes tend to be too many to hand pick. However, financial watchdogs of individual countries are unrelentingly struggling to fish out these con men out of the crypto space; and thus, creating a safer and better environment for crypto investors and enthusiasts to trade in.

Although the size and drawbacks of the crypto space do not make it any easier but they can only try.

An official press release making rounds state that the Swiss Financial Market Supervisory Authority (FINMA) has placed the last piece of the puzzle on the board and uncovered all the illegal activities carried out by Envion AG. The investigation, which started in mid-2018, recently reached a close with the company being liquidated by Zug bankruptcy authority.

Upon investigation, FINMA found that the crypto firm amassed up to 90 million francs (around $91 million) from its initial coin offering (ICO) sale last year. This amount is reportedly obtained from about 37,000 investors who were deceived into purchasing the firm’s token – EVN token – with the promise of making tons of dollars as profit in thirty years time. Unsuspecting investors were defrauded of their hard-earned cash or cryptocurrency – Bitcoin and Ethereum – in disguise of investing in a token.

Besides failing to acquire the appropriate license, investigators found that the management of the firm made unrealistic promises to potential investors and employed unlawful measures in their practices such as using different conditions for different clients. This is clearly in violation of the laws on ICO issuance, resulting in liquidation of the firm.

The final ‘judgment’ was passed by the Cantonal Court of Zug, which relieved FINMA of the investigatory duty by opening bankruptcy proceedings against Envion AG.

The agency once again reminded crypto investors to be cautious of crypto firms they invest in or with. Crypto investors, as well as enthusiasts, are encouraged to carefully analyze the various risks associated with ICOs before making an investment. FINMA reassured the public that they will continue to do everything within their power to ensure a safer and better crypto market for investors and crypto enthusiasts alike.

In addition, they reminded the public that they are all up for legit ICO business models. In fact, they encourage crypto startups in the country. However, they will not relent in fishing out illegal ICO business models and crypto firms who are bent on playing smart by circumventing laid down laws in the country.

Sharing Is Caring: