FINMA Investigates Cryptocurrency Mining Company Envion
FINMA, Switzerland’s financial market authority has announced a deep investigation into Envion. Regulators have been lead to believe that the company has been violating several national laws regarding banking and finance.
Despite its welcoming and adoptive natures of crypto-companies, Switzerland is continuously regulating the industry to ensure that fraudulent activities are handled and do not affect the local blockchain community within the country. As of now, FINMA is investigating Envion on accusations of illegal pay acceptance.
The company moved to Switzerland from Germany to be involved in its positive and support cryptocurrency laws. Initiated in Berlin last year and aimed at creating mobile crypto-mining hardware using eco-friendly designs.
As news reports have stated, Envion has seen several inner conflicts within the company between its CEO and the founders. Both parties have accused the other of shady dealings as a means of personal gain. Chief Executive Officer Matthias Woestmann stated that millions of cryptocurrencies were minted within the company without several figures knowing. The minted coins were sold which resulted in the investigation.
In addition to the fraudulent coin production, Woestmann has also been the subject of accusations, as the founders have stated that the CEO was attempting to seize full control of the company. Several authorities received complaints, including FINMA and investors were left with no sure way of having their funds returned from the company. Several complaints regarding have additionally been made, with investors demanding their assets be returned and the company to be shut down. FINMA has also clearly voiced their position on initial coin offerings and provided regulations for ICO’s. The additions were made to protect investors from fraud and establish cryptocurrencies as securities.