May 18, 2018. BERLIN — Matthias Woestmann and accomplice Thomas van Aubel illegally took control of the majority of envion AG’s shares shortly after the company raised about USD 100 Million in an Initial Coin Offering (ICO).
Envion’s founding team and rightful owners have sought a court ruling against the action which crippled the company and prevents envion from fulfilling the contract made with investors who purchased envion’s EVN tokens.
It now appears the beleaguered CEO stalled envion’s founders from taking legal action for several months with a disingenuous mediation process to prepare a disinformation campaign. As a distraction from legal action taken last week against Mr. Woestmann and post-hoc justification for his actions, he has begun a slanderous media campaign alleging some 40 million digital tokens were generated illegally.
The founding team now faces the challenge of responding to fallacious allegations as they make their case against Woestmann. Though Woestmann can produce no evidence supporting his allegations, envion’s founders have begun a campaign to publish the necessary proof to allow investors to determine the truth based on verifiable documentation.
According to a press release by Matthias Woestmann published in envion’s name, “… in addition to the 86 million tokens issued legitimately in the ICO, another 40 million have been generated [illegally] without the knowledge of the Board of Directors.”
Evidence shows that to be patently false and that Woestmann knows it to be false.
The facts: There is agreement that 86 million tokens were generated for purchases in the public sale. The Prospectus, which served as the guiding legal document for the token sale, outlined the structure for token creation and distribution as follows:
“For each 83 Tokens issued to subscribers, additional 10 Tokens will be allocated to the founders, 5 Tokens to the Company and 2 to the bounty program without consideration.”
The additional tokens beyond the subscriber tokens — for founders, company, and bounty — were mentioned in the company’s Whitepaper and approved months before the ICO by Cyrill Staeger and Matthais Woestmann. Approximately 20 million tokens were created according to this procedure. Woestmann’s allegation that those tokens were generated without his knowledge and approval is verifiably false.
The formula above applies to all purchased tokens, including the private pre-sale which qualified as part of the subscribers tranche, and was mentioned in the Prospectus.
The pre-sale was executed with the knowledge and direction of Matthias Woestmann: about 12.5 million total tokens were sold in the presale.
The presale helped finance company operations to prepare for and execute the ICO.
The founding team possesses at least 10 pre-sale contracts created and signed by Matthias Woestmann.
Around 2.5 million tokens were created as a buffer for pre-sale tokens because Matthias had not delivered all contracts to the founders at the time tokens were generated. He continued to make changes to the token amounts in certain pre-sale contracts through the end of March 2018 and gave orders to distribute pre-sale tokens as late as May 5, 2018. His denial that these tokens were created legitimately is betrayed by the paper trail he himself created.
A total of 5 million pre-sale tokens were generated at the behest of Matthias Woestmann for one big investor alone, whose relationship was initiated by and maintained by Matthias Woestmann. In the end, the investor did not transfer the funds as promised during the pre-sale. To be exact, the founders received the information about the non-payment and resulting surplus tokens directly from Matthias Woestmann. Only Matthias Woestmann was in contact with the investor after he had signed the contract.
The founders have repeatedly asked Matthias Woestmann for permission to destroy those tokens since the necessary funds were never paid. Matthias Woestmann has ignored all requests.
Any oversupply is due to Woestmann’s actions: first, announcing an investor and ordering the token creation; then, after the investor does not pay, refusing to let the tokens be destroyed; and finally, claiming that there has been unjustified token creation which watered down investors’ token value.
Matthias Woestmann could easily respond to the numerous requests from envion’s founders to authorize the burning of tokens and remedy the problem if he were concerned about the effect of these extra tokens. Instead, Woestmann has ignored these many requests of which there is ample written proof.
Translation:
Hello Matthias,
- According to the information you sent me, the investor took a long time — until April — to provide accreditation documents. We would gladly distribute his tokens and also distribute the complete amount of tokens to other investors who have provided full documentation in the meantime. Do we have consensus that that should take place?
- Another topic: we would also like to start destroying tokens. In order to finalize that, we need to agree on a final accounting of tokens, but we can at least start on this to show the community that we are still making progress. What would you say to a first gesture in the amount of 5 million or would you think a higher sum is possible?
Investors can verify the total number of tokens generated publicly on the blockchain:
And here a SCREENSHOT from one signature of presale by Matthias Woestmann:
Woestmann’s scandal around extra tokens appears to be frivolous and desperate as there is an easy solution to the existence of extra tokens: destroying tokens. The existence extra tokens has been public since the end of the ICO. Envion published blog articles and social media postings about the extra tokens and the process of burning them months ago. It has been mentioned many times in the Telegram community that the total supply listed on exchanges is inaccurate because many millions of tokens would be burned.
https://medium.com/@envion/envion-token-burn-process-after-kyc-ce7a48568a7a
All tokens are currently accounted for — something Mr. Woestmann should know considering the vast knowledge of the blockchain he claims to have. The following wallets contain these extra tokens which clearly demonstrate the oversupply of tokens that must be burned:
BTC & Credit Card Purchases0xb2ef8A6D449c78c8f9C1594E07215c545131c050
Pre-ICO & Others Purchases0x462CD55EaE454cED675A267D22EBAfe743b96528
ETH Purchases ( directly from smart contract )
Company Tokens 0xf3923633263B018354b0DB3cf71D25aA05dB8f2C
Bounty Tokens 0xbc8e21CDCbE9414312380edB1898e06B57dE236D
Founders Tokens 0x709BA466946B4E550211a128e64865c2dF250692
All of the tokens are accounted for and publicly verifiable on the blockchain. None have been issued — to the knowledge of the founders — without permission from Matthias Woestmann, and generated according to the Whitepaper and Prospectus. This includes pre-sale tokens produced as the direct consequence of the actions by Matthias Woestmann.
Woestmann has conjured up a scandal of his own design and authored a problem which he is uniquely able to solve by simply doing the job of CEO and authorizing the burning of tokens as announced to investors.The diversionary technique has a fatal flaw which he has overlooked, perhaps because of Woestmann’s own ignorance of how blockchain technologies work — all of the evidence is in public and it all points to a diversion strategy meant to take focus away from the many legal charges he faces for illegally taking control of envion from its founders.
Mr. Woestmann is invited to retract his false allegations and return company ownership to envion’s founders so that they can continue to operate it as planned.
HELP THE FOUNDERS & INVESTORS, SHARE THE TRUTH:
PRESS CONTACT
NAÏMA Strategic Legal Services GmbH (Berlin / Brüssel)
Contact Person: Uwe Wolff
phone: +49 30 2404 8290
email: uwe.wolff@naima-media.de
