35 employees found out about layoffs before Christmas
Zug-based crypto start-up Covario is bankrupt
The FTX scandal claims the first victim in Switzerland: Crypto broker Covario from Zug is bankrupt. The employees found out about the bankruptcy shortly before Christmas.
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Trading in Bitcoin and Co. has not paid off for Covario AG.
Nicholas ImfeldEditor Economics
The bankruptcy of the crypto exchange FTX at the beginning of November shook the Swiss crypto valley with its 6000 jobs. Nobody wants to admit that in public. In the media, executives remained optimistic even after the FTX bankruptcy, but the mood is different behind closed doors. The Zug crypto scene is an industry full of fear and uncertainty (Blick reported).
Now the difficult year 2022 has claimed its first victim in Zug with the FTX scandal. The crypto trader Covario AG has deposited its balance sheet, as confirmed by the Zug commercial register and bankruptcy office at the request of “Zentralplus”. According to “Inside Paradeplatz”, the 35 employees found out about their fate shortly before Christmas.
Lost 500,000 francs a month
Accordingly, the broker has not paid any social benefits since spring. At that time, Covario AG is said to have tried to save the company with new investors. But the current crypto crisis may have been too much for the company.
Covario is said to have burned 500,000 francs a month, as reported by “Inside Paradeplatz”. How much there is still to get for customers in the bankruptcy proceedings is unclear. The outstanding debts should pile up in the millions.