- The Swiss Financial Market Supervisory Authority Finma has concluded its investigation into a foundation active in the crypto space.
- The authority concludes that the Dohrnii Foundation and the foundation’s founder Dadvan Yousuf have seriously violated the regulatory provisions in various respects.
With the publication of the investigation report, the enforcement proceedings opened against the foundation in May 2022 have been formally completed, FINMA announced. The cantonal court of Zug opened bankruptcy proceedings as early as March 2023 due to over-indebtedness and the foundation is in the process of being dissolved.
A cease and desist order will be issued to the founder of the foundation and this will remain published on the website for a period of five years. Finma’s decision is not final and can be contested by the parties at the Federal Administrative Court.
Regulatory provisions violated
As part of the investigation, Finma found that the foundation was carrying out several activities requiring a license when the “DHN token” was launched in spring 2021. Tokens for around 3 million euros were sold to 500 private individuals without being usable in the form described. A corresponding platform for using the tokens was never operational.
In addition, from 2019 the founder of the foundation accepted funds of around 1.5 million francs, which were to be invested in the crypto sector and repaid including the return. According to the report, he and his foundation acted as a securities firm and financial intermediary without permission.
According to media reports, criminal proceedings are currently underway in the canton of Bern against the founder Dadvan Yousuf, in which he is accused of commercial fraud and embezzlement, among other things.