The Commissione Nazionale per le Società e la Borsa (CONSOB), a regulatory body for the Italian securities market has caught up with two allegedly fraudulent crypto investment schemes - Bitsurge Token and Green Energy Certificates.
An official statement released by the regulators on Monday, Dec 17, outlined that the projects are not allowed to offer their investments to investors for the next 90 days, starting from Dec 12. Bitsurge and Green Energy Certificates are being pioneered by Avalon Life, a non-EU based company that has previously been tagged as a pyramid scheme by crypto news publication Cryptovest.
In the case of Bitsurge, CONSOB says that it is promising investors who purchase Bitsurge Tokens worth $1000-$ 25,000, a 6-13% monthly returns. The people behind the scheme is using the Bitsurge.io website, and a Facebook page know as Bitsurge Tokens to promote their activities according to the notice.
Green Energy Certificates, on the other hand, is promising the same high returns for investors, but have wrapped up the scheme under the disguise that they are issuing certificates to those who invest in rainforest regions like Costa Rica.
The regulators cite "Progetto Crypto Green Earth” as the Facebook page used to promote the allegedly fraudulent scheme. Further decisions about the fraudulent schemes are expected to be announced during or after the 90-day suspension.
Are Bitsurge and Green Energy Certificates A Pyramid Scheme?
In the light of the recent CONSOB statement and previous events around the project, there is little reason not to believe that they are pyramid schemes wrapped around cryptocurrency.
For one thing, promising investors high returns within a short period is a primary feature of pyramid schemes. Avalon Life is also popular among the crypto community for using links and referrals to attract unsuspecting investors into the circle. Given the highly polarized nature of the crypto Industry, these kinds of projects attract many followers who are looking for quick gains.
The Cryptovest report which we quoted earlier also revealed how Avalon Life was selling Bitsurge Packages to members of the public and then used it to pump the value of a certain PURA Coin which is now nowhere to be found. It is apparent that such a tactic may have been used by the project owners, in the build-up to their CONSOB suspension.
So, the facts suggest that it is more likely that Bitsurge and Green Energy Certificates are a pyramid scheme.