Italian Regulator Suspends Two Crypto Projects For Alleged Fraudulent Investment Schemes

The Italian Companies and Exchange Commission or Commissione Nazionale per le Societa e la Borsa hits our crypto news today for suspending two crypto projects for allegedly offering fraudulent crypto investment schemes.

The suspensions were reported on the regulator’s website.

The CONSOB is actually the same as the United States Securities and Exchange Commission and represents the regulating government authority that regulates the Italian securities market.

The suspended companies are Bitsurge Token and Green Energy Certificates are scam projects from a company named Avalon Life that is not based in the EU. They have been both banned from offering any kind of investment services for 90 days.

Bitsurge was promoting fraudulent schemes on its website and its Facebook page. The company was offering investors ‘’token contracts’’ that guarantees monthly returns up to 13 percent for capital amounts starting from $1,000 up to $25,000. According to the CONSOB, the customers didn’t participate in the management of their tokens.

The Green Earth Certificates was claiming that the goal is to protect rainforests from deforestation by purchasing forest areas via blockchain. They ‘’provided’’ a 6 percent reward for the investment.

A week ago, the CONSOB issued another warning together with Malta’s Financial Services Authority about a cryptocurrency exchange named OriginalCrypto that was unlicensed.

The unlicensed platform has created a clever marketing approach according to the monitoring website ScamBitcoin, where they promote their services to consumers around the world easily. The exchange has already made some dubious claims about its setup and claims that the exchange is operated by a Bulgarian-based Bali Limited Ltd. parent company though evidence of these claims was nowhere to be found.

The securities regulator also issued a cease-and-desist order to three crypto firms for offering unapproved investment services.