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Envion EVN Update - May 16, 2018 - Legal issues

Here is the latest update on Envion. It seems that there are some major legal issues with EVN. This is likely the first analogue ICO hack — illegally taking control of the entirety of the ICO funds without breaking into a single crypto wallet.

Envion EVN Update - May 16, 2018 - Legal issues

As you probably know, I was one of the first supporters and fans of EVN token, and I invested in pre-ico phase. Few hours ago I got a message about recent events with EVN that I wanted to share with you. Not to mentioned that since the news was launched, EVN dropped over 40%.

I am passing it in its original form:

"The founding team of the Envion project have taken legal action against the shareholders of envion AG (Switzerland), namely Quadrat Capital GmbH, whose shareholder and managing director Matthias Woestmann is also acting as board member (CEO) of Envion AG, after he unlawfully secured the majority stake in Envion AG in breach of contractual obligations. The company has been left paralyzed with no word from Woestmann for many months.

Envion AG is a blockchain startup operating out of Berlin which produces cryptocurrency mining containers powered by renewable energy. After an Initial Coin Offering (ICO) that raised $100 million, plans to create mobile blockchain data centers which install on-site at power plants have now been put on hold by an acrimonious legal battle that pits the CEO against the rest of the company.

The founding team, led by Michael Luckow, partnered with the former newsman and energy industry investor Matthias Woestmann under the impression the elder businessman would bring in investors and advisors to the project from his network and could take up administrative responsibilities while the founders focused on the highly technical project. Woestmann instead proved to be a liability with investors and exploited administrative maneuvers to take control of the company without any visible attempt to execute on the business plan.

Woestmann was tasked with forming envion as an AG company in Switzerland and later appointed CEO with a 19% stake in the company. The founders pooled their 81% of shares via a jointly-held company, Trado GmbH. Woestmann pushed for an agreement in the name of expediency whereby the CEO would control the founders’ shares to speed up decision-making for the initial set-up of the company and transfer them to Trado shortly before the ICO. Instead, he didn’t comply with the founders’ request to transfer shares and covertly issued more shares via a capital increase which left them with only 33% ownership. And no information whatsoever prior to that to the founders.

Luckow and the founders have made every effort in the intervening months to find common ground with Woestmann but to no avail. Rather than restore ownership to the founders as agreed, Woestmann transferred a majority of shares to his codefendant Thomas van Aubel’s company.

The massive success of the $100 million Initial Coin Offering was the work of the founders and executed by their company Trado.

Trado has continued operations for envion with the founders financing preparation for mass production of mobile mining units with their own money until a solution could be worked out with Mr. Woestmann. Hopes for a peaceful solution were dashed when they received proof Woestmann had been secretly soliciting for buyers — going so far as to make up a story that the founders were exhausted and wanted out — and envion could be sold out from under them. The courts are now the only option for the founders."

More information on this issue can be found here.

To conclude, this is not only Envion related issue. I think there will be more like this to come. You should really take care when investing in ICO-s and do not beleive just their whitepapers, as they often misrepresent the reality.

Always do your homework and make sure you read as many of the available information.

Hopefully EVN issue will be resolved, we are yet to see.

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tags: evn envion evn token

Bitcoin Exchange CEX.IO
Bitcoin Exchange CEX.IO