Envion revisited

German Edition availableThe FinTelegram team has been involved in the German-Swiss crypto-mining company ENVION AG since the beginning of the problems. We spoke to the founders, the legal representatives involved, investors and shareholders. Even though the “acute panic” status changed into the typical investors’ frustration, the problem has neither been solved nor have the courts decided. ICO investors are held as hostages in this rather disgusting shareholder battle (read our articles here).

On Telegram, we are registered in several ENVION telegram channels and follow the communication diligently. Most recently, one of the investors published an interesting article in which he alleges that the ENVION founding team around Michael LUCKOW may have manipulated the smart contract. Under the title “ENVION REVISITED – The Case Against the Founders – Part 1“, the apparently knowledgeable ENVION investor presents the results of his comprehensive examinations of the Smart Contract and his considerations in connection with the registration of the SEC ICO with the U.S. SEC.

It appears the function “deliverTeamTokens” is not the one one that was audited by Mr. Backes (this has yet to be confirmed) and it was clearly registered on the blockchain after the audit. If indeed Trado intentionally implemented this function in a non-compliant way with respect to the audit then yes, not only is this fraud but is insider trading […] Let me be clear — I cannot prove this 100% at the moment. However we do know that the founders dumped their tokens early and that the comments in the code clearly say there is no vesting.

The investor has written his article under a pseudonym, which is quite understandable. Based on his investigations, he concludes that the arguments of ENVION CEO Matthias WOESTMANN may well be correct. WOESTMANN claims that the ENVION founders around TRADO GmbH and Michael LUCKOW may have manipulated the smart contract and thus the ICO may have illegally enriched themselves with EVN tokens and proceeds from selling those tokens. Illegal because they sold their tokens within the lock-up (or vesting) period of 6 months. The investor also questions the good intentions of the TRADO founders, who admit that they sold EVN Token during the lock-up period but only to keep ENVION alive and to finance the production of the “Mobile Mining Units (MMU)”. So they said. Unfortunately, however, this production still does not exist.

According to the investor, it’s worth to consider the termination of the ICO’s smart contract.

If an ICO is not conducted properly (in compliance with a smart contract audit) it represents a defacto defrauding of the investor and as a result the smart contract is NULL and VOID […] Such apparently, is the case with Envion’s founders. Let us investors be the coercive power that ultimately holds them to account.

Allegedly, investors were told on Telegram that their investments were safe and “securitized” and that “juicy updates” were coming in April and thus they may have been defrauded into HODLing while the TRADO founders dumped and worked out an exit strategy.

It’s an interesting article and worth to read it. Although I have been criticized by the author in the article for my report on the Canadian ENVION connection, I buy his basic ideas and appreciate his thoughts and conclusions. The investor admits that he does not yet 100% prove and thus he (and we) should be careful with verdicts and final judgments, I guess. But, I fully agree that ENVION token-holders should work closely together to protect their investment.