Another turn around the “Swisscoin“- distribution system – dispute between founders results in prohibition by means of interim injunction

In March 2016 the „Swisscoin“- distribution system started with the aim of attracting a largest possible number of sales partners for the purchase of educational packages on the subjects of the financial market. In addition, a new crypto currency should be introduced, namely the so-called “Swisscoin”.

Quite early, the network marketing scene already discussed the fact, that “Swisscoin” was obviously not (only) based in Switzerland, but also operating via two companies in the Saxon Leipzig.

At that time, Swisscoin pointed out to have the Swisscoin’s headquarters in Switzerland. According to its own statements, the located there Euro Solution GmbH would operate from the Canton of Zug and thereby in the centre of the so-called “Crypto-Valley”.

Consequently, the Swiss company Euro Solution GmbH was declared responsible in the imprint on the page until about November 2016.

By the end of last year, the responsible persons of the Leipzig companies – previously being entrusted with sales responsibilities by Euro Solution GmbH – excluded the company from control and any possibility to influence the “Swisscoin”-distribution system.

Visible for everybody, this was initially realised by stating a so-called “Elster Tonic GmbH”, established in Leipzig, in the imprint of

But – such a company “Elster Tonic GmbH“ does not exist and has never existed. In the commercial register, one can only find an Elstertonic UG [abbrev. German Unternehmergesellschaft] – in other words, an entrepreneurial society. The share capital of the latter one amounts to only €60 – just sufficient for a two-persons-lunch. With these funds, an enterprise committed to generate a crypto-currency having Bitcoin-dimensions is not capable of operating a distribution company.

There can be no question of a “head office in Switzerland” pointed out to every newly registered Swisscoin-distribution partner, contained in a welcome message using broken English (“canton train”) and with numerous spelling and grammatical errors. In addition, the question arises what kind of connection in general exists between the “Swisscoin”-distribution system and Switzerland if it is just operated from Leipzig – by a demonstrably non-existing company.

The Leipzig companies failed to answer this and all further questions raised by its former Swiss partner regarding the current Swisscoin-operations.

In response, Swiss Euro-Solution GmbH obtained with the help of our law firm an interim injunction against its formerly commissioned German companies. In result, the operation of the “Swisscoin”-distribution system by other companies than the eponymous Swiss Euro-Solution GmbH is subject to a prohibition. Furthermore, the distribution partner’s data must be returned to the latter one.

The prohibition also concerned the mentioning of non-existing companies in the imprint and the misleading, untrue titling of unauthorized persons as “Managing Director of Swisscoin”.
The Swiss company made sure that sensible data of its distribution partners would not be spread out over the world starting from Leipzig and not seep away in unauthorized channels: The defendant companies and its responsible persons are prohibited from transmitting the data to third parties.
The Swisscoin-distribution partners should ask themselves whether the misleading of unauthorized companies based on false information had an influence on the distribution system’s substance. Did the payment of all the promised commissions in accordance with the contracts happen? Was the management of the company in a proper way? What happened with the data of the distribution partners? Is, specifically ensured that they are not accessible to unauthorized persons?

With its judicial proceedings against its former Leipzig partner, companies and the backers the Swiss founding company made a valuable contribution to safeguard the rights of the Swisscoin-distribution partners referring to data security.