Berlin - Baar, 25.10.2019

Offices searched in latest development in "most spectacular case of fraud in whole crypto scene"

The Prosecution Service of Berlin has revealed it has searched the offices there of the former CEO of the Baar-based Envion company, Matthias Woestmann, and his lawyer, Thomas von Aubel.

The Envion company, which was set up in October 2017 by Michael Luckow, was regarded at the time as “one of the most promising start-ups in Crypto Valley”, involved in “mobile crypto-currency mining units relating to shipping containers”, some of which did not exist. At its outset, it had managed to raise CHF 100 million from 37,000 investors through an Initial Coin Offering, one of the largest of its kind at that time. The company only operated for 13 months and never actually made any money in this time. What is more, half the CHF 100 million invested has been lost, leaving the shareholders with nothing and taking to the courts to have their money refunded.

Apparently, the trouble started with a disagreement between Luckow, the CEO he appointed, Matthias Woestmann, and the latter’s lawyer Thomas von Aubel. It is in the offices of these latter two that searches have been made, confiscated material currently being examined, but no further information being disclosed.

As mentioned, while the company was known as “one of the most promising start-ups in Crypto Valley”, it has since become “the most spectacular case of fraud in the whole crypto scene”.

While Luckow blames Woestmann and von Aubel for the downfall of the company as these latter two gained the majority of the company shares in a coup, dragging the company down, the latter two equally blame Luckow and other founders for having issued too many Envion tokens to enrich themselves. Indeed, a large number of small investors share this view and taking legal action against Luckow and others.

It was actually less than 11 months ago, in November 2018 that the company was dissolved by the Zug cantonal court with the Swiss Financial Market Supervisory Authority (Finma) concluding Envion had been involved in illicit business, many court proceedings ensuing.

Even if the current developments in Berlin have not yet led to any of the parties being found guilty or innocent so far, that such investigations are taking place is regarded as significant. As Woestmann and von Aubel have already been implicated in an insider-dealing scandal, if found guilty in this case they could face years in prison. In addition, they face having to repay Luckow and the many investors who have lost their money.