Monthly Archives: November 2018

Michael Luckow against Matthias Woestmann and the news spy

On 22 June this year, a lawsuit was filed: Trado GmbH, represented by Michael Luckow, took legal action against Quadrat Capital, represented by Matthias Woestmann, CEO of Envion. Trado GmbH stated that it had organised and technically handled the ICO of Envion AG itself. “Envion AG” is only a “legal shell” or a “legally necessary vehicle for the ICO”. After all, Envion was suspected of being merely a letterbox company in the Swiss train.

The problem of the news spy

The increase in the news spy number of tokens not mentioned in the white paper led to a considerable loss in value of the news spy. To this end, reports:

“According to the CLLB law firm, the additional tokens not prospected in the white paper lead to a considerable loss in value of the EVN token, as the issue proceeds from the ICO were “distributed” over a larger number of EVN tokens. In addition, the voices of those investors from the ICO who declare that they did not participate in Envion AG’s ICO are increasing, if they had known that in addition to the number of EVN tokens shown in the white paper, further tokens are being produced.

The accusation was that the prospectus had been fraudulent. The investors therefore did not know that the painting of Envion AG was only for the facade, but that other people were acting in the background:

“Thus the investors would have believed to invest with Envion AG in a respectable company. On closer inspection, however, it turns out that all of the key people for the ICO are employed by Trado GmbH in Berlin. Its de facto managing director is Michael Luckow and this is registered in the Berlin debtor register,” he said.

reports elsewhere. As it now looks, there is a solution (not necessarily satisfactory for investors) to the problem: the liquidation of Envion AG.

Liquidation – an ICO dissolves

Both sides now accuse each other of not having handed over the corresponding ICO data to an auditor. Under Swiss law, this lack of organs now leads to liquidation. Accordingly, it is now said in a medium post of Trado GmbH:

“According to this decision, Envion AG should be liquidated because Matthias Woestmann, Chairman of the Board of Directors of Envion AG, had not remedied a shortage of executive bodies and had not appointed a statutory auditor (Wirtschaftspr├╝fer) despite the extension of the deadline.

Envion AG is then obliged to dissolve. According to Swiss law, the company remains legally capable and able to act without restriction during the liquidation period. However, their powers are limited to the extent that they may only take actions that are in the sense of liquidation. So: repay the money to the investors. Should a repayments in crypto currencies follow, that leads due to the current Bitcoin course however to substantial disadvantages for investors. Thus the Zurich Tagesanzeiger reports:

“The problem is that the prices of crypto currencies have plummeted. Envion has invested most of its investors’ capital in relatively stable dollars. If the money is returned to investors at a lower rate in crypto currencies, a double-digit million amount would be left behind”.

Russia’s Finance Ministry wants to ban Bitcoin formula, not the blockchain

Even though the subject of Bitcoin regulation is and remains a big issue around the globe, there is probably no other country in the world that lets the Bitcoin community speculate as much as Russia.

For more than a year now, the Russian Ministry of Finance has been speaking out against an alternative currency to the state-issued ruble. Just a few weeks ago, Deputy Finance Minister Alexey Moiseev announced that the Ministry is currently working on a bill to make the exchange of digital currencies into Russian rubles subject to a prison sentence of up to four years.

However, in addition to the statements, the government’s position on the digital currency remains unclear. In an interview with CoinDesk, Moiseev said that Bitcoin and Blockchain technology must be treated differently:

We believe that Bitcoin formula will be very important for different Internet applications in the future

However, Moiseev also pointed out Bitcoin formula risks. By and large, he was somewhat less aggressive than the Treasury itself. “We appreciate the potential of blockchain technology for the e-commerce industry and therefore the technology itself should continue to be allowed and promoted. The handling of Bitcoin formula itself, on the other hand, and viewed as a currency should continue to be viewed critically. Integration into the banking system or exchanging Bitcoin for roubles can be very dangerous”.

Moiseev cited money laundering and terrorist financing as reasons for an urgently needed regulation of Bitcoin. But since Russia is likely to regard the exchange of Bitcoin for roubles as a criminal act, Moiseev sees no danger for the national currency.

Bitcoin and terrorism

Since the first birth of Bitcoin, regulators have been looking for ways to best regulate the digital currency. The state of New York, for example, developed a new legal framework to regulate the digital currency especially for Bitcoin. Most other countries and states in the USA are currently trying to amend current laws and thus make them applicable to Bitcoin.

Many governmental organizations are afraid that Bitcoin could be used by cybercriminals or that it would simplify the financing of terrorist attacks. Especially now, after the attacks in Paris, the authorities are sensitized.

Moiseev also has the topic of terrorist financing on his screen. He says Bitcoin could make the country’s financial system more vulnerable to abuse:

“We are very concerned about current developments, as we have created a good system of protection against money laundering and anti-terror financing in the conventional banking system. We are very concerned that with the legalization of the Bitcoin/Rubel exchange, we could open this window further for criminals”.

But Russia is also observing how other countries are proceeding with Bitcoin’s regulation:

“We are watching exactly how other countries regulate digital currencies and how they deal with the problems of money laundering and terrorist financing,” Moiseev said.