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Securities Regulator Stops Two Crypto Firms for Alleged Scam

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The Italian securities regulator has put a stop to two projects for allegedly offering duplicitous crypto investment schemes.

The 90-day suspensions were made public in an official statement on the regulator’s website that was published earlier this week.

The Italian Companies and Exchange Commission is the Italian equivalent of the United States Securities and Exchange Commission (SEC) and marks a governmental body that regulates the Italian securities market.

Both firms that were barred by the CONSOB — Bitsurge Token and Green Energy Certificates — are supposedly scam projects from Avalon Life, a firm that is not based in the European Union. Both have been prohibited from offering investments for 90 days, beginning December 12, according to two official resolutions.

Allegedly fraudulent scheme Bitsurge was endorsed on the website bitsurge.io and on the Facebook page called “Bitsurge Token.” As cited in the resolution, the company was offering investors “token contracts” with monthly returns from 6 to 13 percent for capital amounts starting from $1,000 to $25,000. The CONSOB document cited that clients reportedly did not have any autonomy in the management of their tokens.

The second scheme, which was called Green Earth Certificates, was reportedly endorsed through the Facebook page “Progetto Crypto Green Earth” and offered “Green Earth Certificates” to safeguard rainforests from deforestation by buying forest areas via blockchain. The alleged scam sought to provide a 6 percent reward on the sum of crypto investments in forest areas — such as Costa Rica — which have large swaths of rainforests.

Just recently, the CONSOB has handed down a joint warning with Malta’s Financial Services Authority (MFSA) about an unlicensed cryptocurrency exchange named OriginalCrypto.

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