The Swiss Financial Market Supervisory Authority is saying that envion AG unlawfully received public deposits on a commercial basis from at least 37,000 investors. The company is being liquidated by the Zug bankruptcy authority.

In March, FINMA concluded its "enforcement proceedings" against envion AG, which began in July 2018. During these proceedings it appointed an investigating agent to investigate suspicious activity "on site." It transpired that the company had unlawfully accepted funds amounting to over SFr90 million (US$89.88 million) from at least 37,000 investors in the context of an initial coin offering (ICO) without the necessary statutory licence. The company was thus acting illegally.

ICOs subject to the Banking Act

In the context of its ICO, envion AG issued so-called EVN tokens. Investors were able to purchase these by making payments in US dollars as well as in the Ethereum and Bitcoin cryptocurrencies. Envion AG granted the token owners claims to repayment after thirty years. Furthermore, the conditions for the EVN tokens issued in a bond-like form were not equal for all investors, the prospecti did not meet the minimum statutory requirements and there was no internal audit unit as required by law. In the present case, this acceptance of US dollars and the Ethereum and Bitcoin cryptocurrencies therefore amounted to an acceptance of public deposits for the purposes of the Banking Act. This, however, requires a banking licence.

No further intervention by FINMA necessary

While the FINMA proceedings were going on, the Cantonal Court of Zug opened bankruptcy proceedings against envion AG on the grounds of its organisational shortcomings. As a result, further supervisory measures against the company by FINMA will not be required.