Spanish crypto mining firm, CryptoSolar has decided to refund $68 million, it raised during its initial coin offering to its investors. The decision comes after the firm reported that it failed to secure necessary regulatory permissions to continue with its business plan and hence they have decided to return all the funds to its investors.
CryptoSolar has sent a letter to all its investors mentioning the move which was shared in the public domain by the country’s IT lawyer, Sergio Carrasco on February 20th. The founders of the project citing the letter said that the situation is beyond their control and has promised to return all the funds in 60 days.
The mining firm was aimed to setup crypto mining facility in Southern Spain and was to utilise solar power to minimise the effect the rising cost of electricity from thermal plants. CryptoSolar had initiated its token sale in June 2018 and raised around $68 million in the two month ICO period. And, according to the report, the majority of the investment came from investors based in Singapore and Spain.
Following the announcement, the token backed by the firm lost almost 85 per cent of its value in the last 24 hours period, according to coinmarketcap.com. Also according to crypto analytics firm, Diar, the ICO project was also named in the top ten ICO losers. The firm has made it clear that it will issue all refunds but will not be responsible for any token purchase after Feb. 19th.
Despite struggling to secure business permits, the company was actively working to expand its businesses and in October 2018, the company had partnered with Chinese energy company Risen Energy to built 300 megawatts (MW) of photovoltaic power capacity. Last month, the company had also joined hands with Bitfury to start a mining operations facility in Paraguay.
But, now after all the recent announcements, its still unclear whether the company will continue to be in business or not in other countries.