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⭐ Features
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Envion the Enron of the Cryptosphere: Past-ICO Review

  • Eric Eissler
    ⭐ Features

    CEO creates a wealth of additional tokens and passes them to a friend and his wife, who then become the majority token holders with 61 percent of the shares

Envion the Enron of the Cryptosphere: Past-ICO Review
Cover image via u.today

It’s rather fitting that these companies both have names beginning with En, in fact it is wildly ironic. Mathias Woestmann is or was the CEO of Envion, a company that promised to use excess power from solar grids to create decentralized mining rigs for crypto. There is a snazzy video of them drop-shipping shipping containers full of rigs at some solar panel energy farms.

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The crime

Woestmann created an illegal capital increase without the founders’ knowledge, which, in turn, diluted the founders’ ownership down to a 31 percent minority share- now Woestmann’s friends have the majority stake and can make decisions without any checks or balances. New shares created via the capital increase were given to Sycamore GmbH, a company owned by Woestmann’s longtime friend Thomas van Aubel and his wife Jutta Freifrau von Falkenhausen. The judges ruled that van Aubel and von Falkenhausen knowingly acted illegally by receiving shares and share responsibility for the serious consequences to the founders.

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The aftermath

The founders’ spokesman Michael Luckow commented on the case by stating the following:

Van Aubel and his wife, Jutta von Falkenhausen, are clearly behind the Envion coup. Woestmann is just a henchman, a lackey. Woestmann finally admits in his press release precisely what van Aubel tried to cover up, even in court, that van Aubel had the company hijacked by his friend Matthias Woestmann at the expense of investors who have now lost a lot of money. Woestmann and van Aubel have thereby destroyed a lot of investors’ capital.

In June, a German court stated that the dilution of the founders’ majority ownership, resulting from a capital raise executed by Woestmann, was an illegal breach of contract, calling van Aubel and von Falkenhausen’s complicity both “immoral” and “especially reprehensible.”

The financials- should you really care at this point?

Envion raised more than $100 mln during its ICO in from Dec. 15, 2017 to Jan. 17, 2018. The token entered public trading at $1.09 in February 2018 and dropped like a rock to $0.07. While the company had a kind-of-novel idea, it was never really that well thought out and never had a chance. The big scam and fraudulent creation and transfer of tokens to new majority holders don’t give much of a chance to do anything else but add another fraudulent soap story to the crypto storybook of scams and major failures.

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About the author

Eric Eissler is based in Chicago and works in higher-education administration and finance. He is a freelance writer covering blockchain technology, fintech, cryptocurrency, the oil and gas industry, and international politics.

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📰 News
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Top Bitcoin Miner Warns – Bitcoin’s Privacy Features Are ‘Quite Poor’

  • Yuri Molchan
    📰 News

    The head of a major Bitcoin mining pool says that Bitcoin privacy is weak and must be improved to prevent BTC from avoiding governments’ clampdown

Top Bitcoin Miner Warns – Bitcoin’s Privacy Features Are ‘Quite Poor’
Cover image via www.123rf.com

The CEO of one of the largest BTC mining pools, Poolin, has recently stated in an interview that Bitcoin privacy has to be improved. The current privacy features make BTC vulnerable to potential regulatory bolt tightening, says he, as reported by Forbes.

The Poolin mining company was set up by several former employees of BTC.com – a world’s major mining pool, a subsidiary of Bitmain. Among them was the Poolin’s current CEO Kevin Pan.

“Bitcoin’s privacy features are quite poor”

Over the past years, developers have suggested several ways to improve Bitcoin’s privacy. However, those were rejected by the community, since they would hard such major things as security, scalability, etc.

A good example here is Confidential Transactions that were among those suggestions. They disguise the amount of BTC sent in transactions. However, the integration of it was rejected, since it could have had a negative impact on the public verifiability of the present BTC supply.

Kevin Pan says that privacy is much more vital for a crypto asset development than scalability. Pan says:

“There is no other big question if the privacy issue is solved.”

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Governments may start controlling BTC miners

The company CEO believes that in theory, authorities or law-enforcement agencies may start telling miners to block certain address from receiving funds or sending them. However, in that case that would have to be 51 percent of the BTC network.

Pan believes that unless a solution to this problem is found soon, governments will get a chance to prevent transactions to certain addresses from happenning.

“What is more troublesome now is if government or law enforcement departments begin to create a blacklist of transaction addresses, it will make certain transactions unable to be packaged.”

“In fact, these can be done. But if there is privacy, you can't know who the address belongs to, and you can't determine how much the amount is, and there is no way to control the currency system. So for me, Bitcoin is basically no problem if the issue of privacy can be solved.”

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China plans to clamp down on BTC miners

Previously, U.Today reported that Inner Mongolia, an autonomous region of China, plans to ban all the numerous mining pools located there soon.

Since this region is one of the biggest local crypto mining areas, some believe that China is about to ban mining of all cryptocurrencies ahead of the so-called ‘China Coin’ launch.

Do you think that poor Bitcoin’s privacy features could indeed bring down regulatory control over BTC one day? Feel free to share your view in the comments section!

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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