Italian regulators take action against two crypto firms for alleged crime
Earlier this week, the Italian Companies and Exchange Commission (CONSOB) cracked down on more crypto-related schemes by suspending two firms for suspicious activity.
Like the United States Securities and Exchange Commission (SEC), CONSOB is a regulatory body that governs the market of financial securities. The governmental agency issued a 90-day suspension to Bitsurge Token and Green Energy Certificates.
These schemes allegedly used Facebook to offer their investments to consumers. For instance, Bitsurge took advantage of consumers by promoting a 6 to 13 percent return on token contracts from capital ranging from $1,000 to $25,000. CONSOB also reported the company prohibited customers from managing their investment portfolios. On the other hand, the Green Earth Certificate scheme promoted the prevention of deforestation to attract customers. Reportedly, the scheme claimed that investing in forest via crypto would prevent deforestation and render a 6 percent return.
Authorities believe these schemes have been orchestrated by Avalon life, a non-European based company.
This suspension is amongst CONSOB’s series of actions to regulate the exchange of cryptocurrency. Recently, CONSOB sent a cease-and-desist letter to three crypto firms for alleged fraudulent activity. We might also hear of more, soon.