I Probably Lost 5.7% of My Portfolio (Updated January 24)

Big news today guys! This article will briefly explain how I have probably lost 5.7% of my Investment Portfolio. Envestio’s investors, read this article!

As I said and wrote countless times, P2P Lending and Real Estate Crowdfunding are risky investments. Among the numerous platforms available on the web, I chose to invest in 11 of them.

Some of them are very risky (example: Envestio) while others are less risky (example: Mintos).

In the last months, I tried to build a diversified Portfolio, and the result is the following:

In this article, I want to highlight some events that occurred in the last days.

What’s going on?

The protagonist is Envestio, which is one of the 11 platforms I’m investing in. In the last days, they had some issues. It all started after the Kuetzal’s closure. Kuetzal was quite similar to Envestio, but with higher returns.

So in the last days many investors started to panic about Envestio and they tried to withdraw their balance from it.

What I know is that payments from Envestio are blocked since January 12th. As far as I know, this was the last day payments were processed.

Edit: I share this post in two Facebook groups. In one of them, one guy said that one guy he knows received a payment today. I said him to share the proof here. Waiting for it!

The official release (21 January)

Today the platform released an official release. Here it is:


“Dear Investors,
We would like to address all our clients, investors, borrowers and other counterparties with the following very important issue. We proudly declare that till present moment Envestio managed to fulfill on time and in good faith all financial obligations to all contractual investors and borrowers, despite the very unfavorable situation in the crowdfunding market, provoked by the uncertainty and potential fail of Kuetzal platform.

Simultaneously with the recent concerns within the industry, we tracked repeatedly various technical attempts targeted to influence dramatically on stability of Envestio platform. They were performed through hacker attacks on our web site and platform’s internal structure and database.

At the same time, we noticed that destructive public relations campaign against Envestio has been initiated and which consisted of spreading knowingly false and unconfirmed information by numerous internet resources questioning financial stability and reliability of our platform, denigrating the reputation of the Envestio owners and key employees.

We tend to consider these attempts as a consistent and well-planned set of actions aimed to cause significant financial and reputational damage, as a result of which the Envestio platform should inevitably begin to experience substantial difficulties with current payments to its investors. We assume that the ultimate goal of all these actions is to devalue overall Envestio’s business, and the subsequent potential raider takeover of the company or an attempt to eliminate the company from the industry, getting rid of as strong competitor. The implementation of the aforementioned scenario is evidenced by a number of factors and hostile actions that occurred precisely at the moment when a serious crisis of confidence reigned in the crowdfunding market and which actually was caused by the scandal surrounding the activities of the Kuetzal platform.

Envestio strongly condemns any actions aimed at further destabilizing the current crowdfunding market situation and disrupting the activity of the Envestio platform, as these factors together can lead to an uncontrolled solvency crisis, influencing not only Envestio but also other industry participants.”


The website is down

After this release, the website went down and now it’s still not available, as you can see in the next screen:

This is not good at all, right?

I’m starting to think that Envestio is a fraud. However for the moment nothing is sure, but I’m writing this article to let you know that if you have invested in Envestio like me, you should pay attention to how things evolve in the next days.

I will add any news and updates to this article. In the meantime, all I can do is accept that I have lost 5.7% of my Investment Portfolio.

One good thing is that their blog (https://blog.envestio.com) still works.

Useful resources

Some useful resources so stay updated:

As Madis Eskusson made me notice on Facebook, the company “has failed to submit it´s latest (monthly) VAT declaration to the Estonian Tax and Customs Board and had a tax debt (although only ~500€) for a couple of days.” Source: inforegister.ee

My situation

I deposited 300€ on Envestio. The last I checked the account, the balance was 1020€ more or less. This morning (January 21) I tried to withdraw 20€ (I had only these available).

Final remarks

I ask you, if you want, to share your experience with a comment. I wish there were more points of view besides mine!

To stay updated on this topic, subscribe to the blog!

NOTE: I’m not saying that Envestio is a second Kuetzal. I’m just sharing the latest news about this situation, considering that I have a deposit on this platform. Obviously I hope this situation will resolve for the best!

Update – January 22

Envestio’s website is still down while their blog is active but the last communication is the official release published yesterday.

Some Facebook users think that the platform is migrating hosting and their comeback it’s just a matter of time. In particular, I read this comment on FB:


“Envestio is currently in the middle of a migration. Their blog is currently being hosted by GoDaddy, possibly they are moving the website itself to Microsoft Azure for increased security and scalability.

As the error points out when visiting https://envestio.com/, there is only a configuration issue regarding the domain name.

So hold your horses and wait it out, it can take a couple of hours or days for this to be fixed.”


Correlated with this comment, I found the following image:

I also want to share with you this post by thecoinmagnet.com. It’s an interview with Envestio in which they ask to the platform: “What would happen if the company goes on bankrupt?”. Follow the link to find out the answer given by Envestio.

Update – January 23

Today also the blog is offline, as you can check by yourself.

New resources:

Update – January 24

I’m daily reading the messages on the Envestiodiscussion group. If you’re italian, there is also an italian group.

In the international group people are getting organized. I would like to share with you these two new resources.

Envestio work streams – It’s a spreadsheet on Google Drive in which you can find the operative plan and the people who are taking action to complete each step.

Envestio folder – The Google Drive folder that collects many documents, screens, and other files that regards this situation. People are also uploading their deposit proofs.

5+

4 Replies to “I Probably Lost 5.7% of My Portfolio (Updated January 24)”

  1. I withdrew the 15th of January.
    Got an email saying it was processed. I even wrote them 2 days after I didn’t recieve the payment. And I’m still waiting. I’m wondering the people who withdrew after the 12th, will they lose theif funds or it might be processed already and headed to folks Bank account? Just asking.

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