Mobile sustainable mining is what Envion is bringing to the world, and it's not been a easy task, but not for technical problems. The project has been plauged with management complications from the outset, resulting in CEO and Founding members parting ways, but is it now looking like it may be pivoting and turning around?
Mobile Mining Units (MMU)
First let's get a picture of what Envion is all about. Built inside shipping containers, the company creates entirely bespoke designed, air-cooled mining farms.
The logic behind this move being these can be positioned where ever electricity is most affordable, and moved when conditions change.
A MMU (Mobile Mining Unit) is certainly an innovative, and interesting solution for the problems faced by miners. Mitigating putting huge strains on the power grid, or natural disasters such as flooding or fire.
The MMU is built in a repurposed shipping container, that can be easily secured and placed close to sustainable power sources.
Ideally the MMUs will be positioned to take any over capacity electricity being generated, and make power plants more efficient in providing constant usage and reducing waste.
Envion burst onto the ICO market in 2017, with a strong pre-sale and raising a total of $100mln, putting it as the 6th largest ICO we have seen so far.
The tokens went to be publicly exchange tradable on hitbtc in early February 2018, to which since then have sold off quickly.
To date there are no Mobile mining units operating, the CEO Matthias Woestmann has been accused of illegally taking majority control of Envion AG's shares shortly after the end of the ICO on January 21st 2018, colluding with his colleague Thomas Van Aubel a Berlin court ruled on June 24th 2018 passing an injunction.
The 40 million tokens take over debacle
Now founders of Envion seek further court ruling, to be able to fully operate the company and fulfil the contract between themselves, and investors who participated in purchasing EVN tokens.
It's been a long time coming for investors of Envion, to hear the outcome and discover the truth about the companies operations, as the CEO Mr Woestmann who is accused of an illegal take over, started first in May with a counter attack, starting a slanderous campaign alleging 40 million digital tokens were generated illegally by Envion Founders.
Thus causing a delay for several months, as first these allegations had to be brought to light. The defending team had to now provide evidence to the fallacious allegations, even though no evidence was presented by Woestmann.
Envions founders begun a campaign to publish the necessary proof to allow investors to determine the case.
Founders Fight Back
The website www.envion-founders.org launched as part of a "total transparency" campaign for investors to learn more about exactly what is going on. Updates of the trial and proceedings can be found here, if you are an investor in Envion or interested in the project, please make sure you take the time to learn more about what is going on.
Envion founders have been clear in presenting the breakdown of how the total 127 million Envion tokens were created, along with links to verify this on the Ethereum Blockchain.
In June, a packed Berlin court heard if Woestmann did dilute founders shares and give new shares to his associate Thomas van Aubel, reportedly known for similar operations, the court room erupted in laughter when the defense lawyers attempted to dismiss evidence as "scribbles from the internet" unaware the documents were infact an official investors newsletter from the CEO and a press release pubished by Envion AG, both released a day prior to the hearing.
The news that the documents did infact come from the defenses absent clients, left the lawyers blushing amid chuckles from the court benches.
In a press release dated May 16th Woestmann stated that 40 million tokens "have been generated illegally" by Envion's Founders.
It states that 103 million of 127 million tokens were legitimately created.
Woestmann’s accounting leaves a 24-million-token surplus while simultaneously stating that only 13 million tokens remain illegitimate after eliminating 7 million belonging to a pre-sale investor who defaulted.
It goes on to state that 15 million illegal tokens would be on the market were 5 million to be destroyed in a process called a token burn.
Now the Envion founders have begun working with the Swiss financial regulator FINMA and are working to remove the CEO from the board. As of July, FINMA has been involved in a on-going investigation into Envion, working with Trado GmbH, representing the founders' interests.
So far they have won an injunction against Woestmann for breach of contract on June 21st. Whilst Envion is investigated FINMA announced on their website that Swiss based law firm GHR while be replacing envion's board. Woestmann and newly appointed board member Marc Gurov may no longer act on behalf of Envion without consent of the investigators.
FINMA will determine if the ICO was conducted legally and whether the board is fit to run the operation. This action further restricts Woestmann from causing harm to envions assets, although doesn't move us out of the stale mate situation.
$100 million is still yet to be used, no mining has bene done yet because of these accusations and legal complications.
A three judge panel ruled that actions by the current majority shareholders have damaged the company and its assets. More than 35,000 people invested in Envions ICO hoping to share the mining profits generated, it is now estimated that millions of dollars have been lost in not operating the company.
Full disclosure: The author holds Envion and partaked in the ICO. ICNN News holds no positions.