Swiss Regulator FINMA Concludes That Mining Firm Envion’s ICO Was Unlawful

The Swiss Financial Market Supervisory Authority (FINMA) has finished enforcement proceedings against crypto mining firm Envion AG, the authority announced on March 27.

As a result of the investigation launched in July 2018, FINMA concluded that Envion’s initial coin offering (ICO), which closed in early January 2018, was unlawful.

Envion, a blockchain firm that claims to provide decentralized, clean energy for mobile mining units, faced a liquidation order from the cantonal court of Zug in November 2018 for conducting an allegedly unauthorized ICO. According to FINMA, the ICO raised more than 90 million Swiss francs, or roughly $90.5 million, from at least 37,000 investors without the necessary statutory license from the regulator.

While Envion’s co-founder Michael Luckow made an effort to save the firm and its original concept, financial supervisors appointed an investigator to ensure that liquidation was unavoidable, as reported last year.

Following today’s announcement, FINMA stated that from now on the authority will not be responsible for supervision of Envion. FINMA also stated that it will not be able to provide information about the financial situation of Envion as the bankruptcy proceedings are controlled by the Bankruptcy Office of Zug.

At press time, Envion’s EVN token is down almost 30 percent, trading at $0.056, according to CoinMarketCap. The token’s market share now amounts to around $6.2 million, while its trading volume is around $3,300 at press time.

Recently, the Swiss Federal Council announced the start of a consultation period on the adaptation of federal law for blockchain development. The authority said it was aiming to bring more legal certainty over blockchain applications and build a basis for a regulatory framework for the industry in Switzerland.