FINMA, Switzerland’s Financial Market Supervisory Authority, has found Envion AG guilty of receiving commercial public deposits from a minimum of 37,000 investors in the context of an initial coin offering (ICO).
Envion AG is currently being liquidated.
FINMA’s enforcement proceedings against the company began in July 2018 and have concluded this month. Its investigation discovered that more than 90 million Swiss francs had been raised by the company in the form of an initial coin offering — a once-popular and now-notorious fundraising method that exploded during the cryptocurrency bull run of 2017. This initial coin offering was conducted without a proper statutory license and thus “seriously violated supervisory law,” according to an official press release.
The unlicensed ICO offered investors EVN tokens in exchange for US dollars, ether, or bitcoins. Token owners were reportedly granted “a claim to repayment after thirty years,” despite the fact that Envion AG lacked a banking license. Explains FINMA: