Financial Supervisory Authority Demands Closure of Crowdfunding Website

WOW air

A group purportedly aiming to resurrect WOW air has been ordered to close their crowdfunding website by Iceland’s Financial Supervisory Authority. The site is requesting 10-20,000 shareholders for the purpose of resurrecting the recently-bankrupt airline or founding a new low-cost airline to take its place. RÚV reported first.

According to a statement released by the Financial Supervisory Authority, the crowdfunding initiative does not fulfill the requirements of the Act on Securities Transactions. The statements ends by warning investors that they do not enjoy the same legal protection of their purchases via a private initiative as when they purchase stocks in a company that is registered on the stock market.

WOW’s former CEO Skúli Mogensen says he is in no way connected to the effort but is following closely. WOW air officially ceased operations on March 28, leaving thousands of passengers stranded and some 2,000 locals unemployed.