The Swiss voice in the world since 1935
Top stories
Stay in touch with Switzerland

Scandal hit crypto mining firm probed by FINMA

FINMA
FINMA has indicated in the past that it won't stand for any nonsense by rogue crypto outfits. Keystone

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.

The Swiss Financial Market Supervisory Authority (FINMA)External link said on Thursday that it had opened an enforcement proceeding against the start-up on suspicion that it has broken banking laws with an “unauthorised acceptance of public funds”.

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.

You can follow Matt Allen, the author of this story on TwitterExternal link.

More
envion logo

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…

Read more: Switzerland tarred by fresh crypto scandal


Popular Stories

Most Discussed

News

A live scarecrow competition to thrill Denens (VD)

More

Live scarecrow competition set to thrill Swiss

This content was published on The Fête de l'Epouvantail (scarecrow festival) is celebrating its 30th anniversary and returns to Denens in canton Vaud for its seventh edition from July 10-20.

Read more: Live scarecrow competition set to thrill Swiss
Man dies in accident on toboggan run in Matten near Interlaken BE

More

Man dies on Swiss toboggan run

This content was published on A 35-year-old man has died in a work accident at the valley station of the Heimwehfluh toboggan run in Matten near Interlaken, canton Bern.

Read more: Man dies on Swiss toboggan run
The Swiss embassy in Tehran reopens

More

Swiss embassy in Tehran re-opens

This content was published on The Swiss embassy in Tehran re-opened on Sunday after being closed on June 20 owing to the unstable situation in the country.

Read more: Swiss embassy in Tehran re-opens
Queen of the Netherlands attends European Championship match in Lucerne

More

Euro 2025: Dutch queen cheers on team in Lucerne

This content was published on Queen Maxima of the Netherlands and her youngest daughter Princess Ariane attended the Netherlands' women's European Championship football match against Wales in Switzerland on Saturday.

Read more: Euro 2025: Dutch queen cheers on team in Lucerne
30-year-old charged with drone flight at Women's European Championships

More

Man charged with flying drone at women’s Euro 2025

This content was published on A man flew a drone around the venue on Wednesday evening during the first match of the Women's EURO 2025 in St. Gallen. The 30-year-old violated the absolute ban on flying during match days. He was reported to the police.

Read more: Man charged with flying drone at women’s Euro 2025
257 Swiss companies are members of the SBTi

More

More than 250 Swiss companies sign CO2 reduction initiative

This content was published on A total of 257 companies from Switzerland have signed up to the Science Based Targets Initiative (SBTi). In doing so, they are committing to CO2 reduction targets that are compatible with the Paris Climate Agreement.

Read more: More than 250 Swiss companies sign CO2 reduction initiative

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

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.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR