The CHF 40 Million Startup Fraud That Rocked Switzerland and the US: What Investors Need to Learn from Vinivia AG

Switzerland's Biggest Startup Scandal: How Vinivia AG Collapsed

Vinivia AG, a live-streaming technology company based in Zug, is now at the center of one of Switzerland’s largest startup fraud cases, having raised over CHF 40 million before coming under regulatory scrutiny. The Swiss Financial Market Supervisory Authority has intervened, stripping the company’s founders of their signing powers and appointing an external administrator.

How did a promising tech startup crumble? What are the key takeaways for investors?

Regulatory Takeover: FINMA Seizes Control of Vinivia

On March 4, 2025, FINMA took full control of Vinivia AG by appointing Holenstein Brusa AG as an external administrator. Founders Stefan Graf and Marcello Genovese were completely sidelined—an extreme move that signals serious concerns about fraud and financial misconduct.

Key regulatory actions:

Revocation of signing authority for Graf and Genovese.
Holenstein Brusa AG assumes complete control of company operations.
Heightened oversight, typically reserved for severe financial violations.

These developments point to significant legal and financial irregularities.

The Rise and Fall of Vinivia AG: A “Tech Disruptor” Gone Wrong

Founded in 2020, Vinivia branded itself as a pioneer in live-streaming social media, boasting interactive broadcasting technology and five pending US patents. The company promised to revolutionize creator monetization and audience engagement, drawing comparisons to TikTok and YouTube.

Leadership team:

Stefan Graf (Co-founder, President of the Board), German Citizen living in Luzern
Marcello Genovese (Co-founder, Member of the Board), German Citizen living in Zug
Kunal Punjabi (Chief Product Officer)
Vlad Vodolazov (Chief Technology Officer)
Alexandra Toepfer (Chief of Staff)
Torsten Schiefen (Chief Digital Officer)

Despite its ambitious vision, financial mismanagement and fraud allegations tell a different story.

Vanishing Millions: Where Did CHF 40M in Investor Funds Go?

Vinivia’s fundraising timeline:

Seed Round (Oct 2020): CHF 1.5M
Series A (Aug 2021): CHF 11.3M
Series Unknown (Jan 2023): CHF 8M
Series B (Mar 2023): CHF 20M
Latest Round (May 2024): ~$2.05M

Total capital raised: CHF 42-43M (including a CHF 1M acquisition).

Despite these funds, reports point to unpaid employees, vendor disputes, and missing financial records.

Breaking Down the Allegations: Fraud, Unpaid Salaries, and Extravagant Spending

1. Investor Deception and Fund Misuse

Investors claim millions meant for app development were redirected for luxury spending.
Accusations of financial misrepresentation to secure more funding.

2. Employees and Contractors Left Unpaid

Multiple employees reported salary withdrawals after payment was initially deposited.
A contractor, a mother of two, faced home foreclosure after six months of unpaid invoices.
401 contributions allegedly reversed, with Vinivia citing "bank failure."
A planner for Vinivia’s 2024 launch party claims the company owes her $300,000.

3. Lavish Spending While Workers Went Unpaid

A high-profile brand launch in April 2024 featured celebrities Kelly Rowland and Tyga.
Marcello Genovese flaunted a luxury lifestyle on social media, despite unpaid salaries.
Company-branded Tesla Cybertrucks and courtside Lakers seats raised further suspicion.

4. Bankruptcy Followed by a Shady "Rescue"

Vinivia declared bankruptcy in autumn 2024, only to be "rescued" by a Swiss financial firm.
The firm later claimed it was misled about Vinivia’s financial condition.

5. FINMA’s Intervention Confirms Serious Irregularities

Founders stripped of all legal authority.
An independent administrator takes over financial and operational control.

The PR Illusion: How Vinivia Built a False Image

While internally plagued by financial chaos, Vinivia’s leadership crafted a glowing media presence.

In 2024, major outlets like TechRound, CEOWORLD, The Globe and Mail, LA Weekly, and San Diego Reader profiled Marcello Genovese as a tech visionary.
Articles painted him as a wedding singer-turned-tech mogul, dedicated to creator empowerment.
Rolling Stone had a feature pending verification in early 2025.
Strategic social media posts showcased supposed success, concealing the company’s financial distress.

Despite these efforts, no real technological breakthroughs emerged, and the company unraveled.

Investor Takeaways: How to Spot the Next Vinivia

The Vinivia case exposes red flags that all investors should recognize:

1. Demand Financial Transparency

Review financial records before investing.
Be wary of unexplained expenses, payroll issues, or missing funds.

2. Don’t Be Fooled by Media Hype

Press features don’t equal legitimacy.
Scrutinize business fundamentals, not just PR campaigns.

3. Investigate Leadership History

Research founders’ backgrounds, past ventures, and compliance history.
Avoid companies where executives flaunt luxury lifestyles while employees remain unpaid.

4. Prioritize Rigorous Due Diligence

Conduct background checks on founders and board members.
Seek independent third-party audits.

5. Consider VC Funds Over Direct Investments

Vinivia’s collapse proves direct startup investments can be high-risk.
A venture capital fund offers diversification, expert oversight, and fraud protection.

A Case Study in Startup Fraud

Vinivia AG’s downfall is a textbook example of financial mismanagement, deception, and regulatory intervention. Despite raising CHF 40 million, the company allegedly failed to pay employees, while its founders lived lavishly.

With FINMA now in control, the case highlights the dangers of unchecked startup investments. Investors must exercise caution, conduct deep due diligence, and remain skeptical of too-good-to-be-true success stories.

The CHF 40 Million Startup Fraud That Rocked Switzerland and the US: What Investors Need to Learn from Vinivia AG