Crypto-based company Envion AG has seen a sad end, the Cantonal court of Zug in Switzerland has ordered that the mining firm is closed down completely.
German News outlet, Handelsbatt had reported that the start-up mining firm aimed at combining cryptocurrency with green power had been dissolved due to an unauthorized Initial Coin Offering it conducted on November 28.
The mining firm which created to carry out its mining activities using clean energy had raised dust back in January this year for disregarding Securities laws when it raised about $100 million in funding through an initial coin offering.
This decision had added to the pile of negative sentiments associated with cryptocurrency mining, most of which is centered around the large amounts of electricity crypto finance operations consume.
Envion’s Partners Disputes
The company had suffered inner ramblings before the Court’s decision, two partners Michael Luckow and Matthias Woestmann had several disagreements that affected the company.
Woestmann had accused Michael Luckow of breaching their agreement by producing too many tokens. To further worsen the situation, Woestmann received a capital raise that reduced Luckow’s share of the company.
The partnership between these two broke down terribly to the point where they had to settle their dispute in court, a decision that grounded the company. The Court had ordered that the company be shut down, stating that the mining firm did not have a functioning board of directors after Woestmann stepped down as chairman and also never had an auditing function.
The Court further advised investors who participated in the Envion’s ICO to verify their identities and file claims with the bankruptcy office, or risk not being considered in the dissolution and bankruptcy proceedings. According to the report the court stated that these Investment claims, must be filed within one month of the dissolution announcement, or they lose their investments.