Commissione Nazionale per le Società e la Borsa (CONSOB) the Italian agency in charge of securities has released a memo of its latest blacklist. The January 28 release had Togacoin on top of the list as the agency warned the public to be avoid the project.
Others blacklisted companies are Smart Choice Zone and FxBreeze, all of which obtained no authorization before operating in the country.
The three latest inclusions in the agency’s scam blacklist is an attempt at keeping the public informed on the risks inherent in arbitrarily investing in offers that promise high returns just to get investors money.
239 Percent Per Annum Profit
Togacoin is offering investors returns of 239 percent a year with other enticing offers. The project claims it is a new generation mining operation. This is contrary to facts showing the coin market struggling under a downturn and increased mining difficulty.
Interestingly, Togacoin claims it is the first project to distributes revenue during crowdfunding, which at best is bogus. Scammers are known to use initial coin offerings as launch pads to steal from investors.
The CONSOB warning came at a time the crypto industry is in dire need for a clean-up. Although regulatory agencies do their best to issue such warnings, most of the scams are undetected until they are declared exit scams after crowdsales.
Little Information On Site
Togacoin has scanty information that is somewhat unrealistic on its website. The team stated that it would “separate its mining operation form electricity cost” in an opaque statement that points to the suspicion that the operators were struggling to make sense in an area that they are not versed in.
The website said that their mining operation would be environmental friendly although it did not state in what ways they intended to accomplish this. Perhaps the main give-away that made the Italian agency list the project a scam is the interest rate which was clearly aimed at luring investors.
Smart Choice Zone & Fx Breeze
One of the other blacklisted companies Smart Choice Zone is a UK registered company. The Beta Company House of UK stated that the Glasgow registered binary option company submitted its last statement on April 11 2018.
The other company is Fx Breeze is a foreign exchange broker that describes its services as meant for all types of traders. Although the agency did not explain the reason for the blacklist, online reviews obtained on the company shows that it has poor reputation as a financial services company.
Among the issues with the company is a high withdrawal limit which means that they withhold a bulk of trader’s funds until the traders accumulate substantial amounts with respect to their deposit. The Estonia registered company was found to persuade investors into investing in FOREX trades promising them profit but would ask for more after the initial investment and frustrate moves to withdraw deposited funds.