Switzerland's financial regulator said crypto firm Envion illegally took $90 million in deposits. The now-defunct firm is one of the first prominent cases of Swiss enforcement action in the burgeoning sector.
Swiss regulator Finma found Zug-based Envion broke the law by accepting investor money in a $100 million initial coin offering last year, it said in a statement on Wednesday. The findings are the result of a nine-month investigation into Envion, which spiralled into infighting shortly after the fundraising.
«It was discovered during this that the company had unlawfully accepted funds amounting to over 90 million Swiss francs from at least 37,000 investors in the context of an initial coin offering without the necessary statutory license», the Bern-based overseer said. «The company was thus acting illegally and seriously violated supervisory law.»
Finma said the nature of tokens issued by Envion would have required a banking license, which the start-up didn't have. Envion is now in bankruptcy proceedings in Zug due to «organizational shortcomings».
Regulator Warns
Finma took the opportunity to underscore its vigilance in the coin space. «Finma will continue to consistently take action against ICO business models which violate or circumvent supervisory law», the body said.
The Envion news comes on the same day that Switzerland's finance minister heads for Zug to address a key blockchain and crypto conference held in Zug. Switzerland just began consulting on a raft of legislative changes meant to ease life for blockchain firms.
The Envion investigation is one of the first for Finma: the start-up was one of countless crypto providers which have flocked to Switzerland to make use of token-friendly regulation and favorable legal status.
