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Envion had completed one of the most successful Initial Coin Offerings (ICO) at the beginning of 2018 with $100 million. However, instead of developing crypto mining, founders and CEO accused each other of fraud. Fintelegram reported on the absurd events that turned a success story into a probable object of insolvency. Now the investors are filing lawsuits. 

The legal issues between the two founding teams of the Swiss ENVION AG with Michael LUCKOW and TRADO GmbH on the one hand and Matthias WOESTMANN and his Quadrat Capital GmbH, on the other hand, continue to concern authorities, lawyers and courts in Germany and Switzerland. That’s what was to expect in this very special ICO case.

As reported by FinTelegram, the Swiss Financial Market Supervisory Authority FINMA already launched enforcement proceedinga against ENVION AG and has sent a commissioner to investigate possible violations of Swiss capital market laws. The two directors Matthias WOESTMANN and Marc GUROV must not make decisions without the consent of the FINMA commissioner.

Before the court in Berlin, Germany, the two founding teams continue to argue at shareholder level over the control of ENVION AG under stock corporation law. A quick court decision is not to be expected and an out-of-court settlement is not in sight at present either.

Now the first ICO investors are also commencing legal procedures before German courts. As reported by the German law firm CLLB, an action was filed against TRADO GmbH and ENVION AG on behalf of several ICO investors:

After corresponding letters of formal notice from the law firm CLLB Rechtsanwälte on behalf of a number of investors to Envion AG, whose executive board Matthias Woestmann and Trado GmbH remained unanswered despite setting a deadline, the first claims for damages against Envion AG and Trado GmbH have now been filed by the law firm CLLB at the Berlin Regional Court.

The complaints are supported primarily on folder adhesion, deliberate immoral damage and the injury of supervisory regulations, explains the Kanzlei CLLB.

All of the applications now filed are aimed at reversing the EVN investment.

CLLB reports that new investors are joining daily demanding legal support.

The CLLB’s claim makes perfect sense to us. In fact, we have reported several times in our FinTelegram that in our opinion white paper and prospectus are obviously wrong and thus ICO investors were misled (see here our ENVION research file). The complaints filed by CLLB are all aimed at reversing the EVN investment. Additionally, the liquidation of the company would also be worth considering from our point of view, as ENVION AG currently only appears to be an empty shell company.

At present, it really does not look as if the ICO investors can expect a solution to this escalating conflict at some point in the near future. ENVION AG’s business activities – crypto-mining – are a long way off. Too bad, actually. The ENVION ICO was one of the 15 most successful ICO’s worldwide and receive around USD 100 million from ICO investors. It felt promising. So far the project has failed only because of the shareholders’ and founders’ irrational behavior!

  1. Szilard U. says:

    Spot in Tamir!
    You and your colleague are the last impartial journalists we still have on this case.

    I personally introduced CLLB to all the worthy investors of Envion and I must say that, as of today, we are certain we will prevail on these Criminals!

    We cannot accept anymore lies from the founders.

    1. Tamir Cohen says:

      Thx for your comment. Unfortunately, people get greedy when dealing with large numbers as in the Envion case. That’s why I consider those upfront multi-million dollar investments based on white papers as a disease rather than a cure. Too much money ruins the moral, I guess.

    2. GG says:

      Thanks for the update. Is there a easy way for other investors to get into this legal action?
      Thanks a lot for your help!

  2. Kari Ilkkala says:

    Said this back in May and now repeat: this ongoing mess is a planned and perfect disguise to hide the fact that Envion was and is a scam from get-go. Anyone with a bit wider knowledge of the range of technologies involved could see it with their forehead.

    Everything is going as planned from the perpetrators point of view.

    1. Tamir Cohen says:

      Well, looking at the big picture around Envion one could agree with your hypothesis of a planned scam. We already expressed our opinion that neither of the two founding parties is innocent and both are to blame for this mess (scam?).

  3. Investment Solutions says:

    I know Envion had some court hearing earlier this year. I would like to know if there any update on this case? I invested money into EVN Token and since I’m not getting what was promised I would like to get a full refund. Please let me know about all the legal choices I have.
    Thank you

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