Italy’s CONSOB Suspends Two Crypto Firms for 90 Days

Published on December 12 by Cryptovest Staff

CONSOB has halted for 90 days the Italian services of the Bitsurge Token and Project Crypto Green Earth.

Italy’s stock market regulator, CONSOB, has temporarily suspended the local services of two cryptocurrency companies – Bitsurge Token and Project Crypto Green Earth – on the grounds of financial law violations. The measures will continue for a period of 90 days based on ruling from December 12, the regulator said on Monday.

The two entities have been deemed to offer unauthorized services and could be placed under permanent bans if CONSOB confirms the breaches after the three-month period. A CONSOB analysis shows that both Bitsurge Token and Project Crypto Green Earth are projects of the Costa Rica-based Avalon Life SA. The websites of the two firms and the parent company were still accessible as per a Cryptovest check at 17:00 UTC on Tuesday.

Bitsurge Token targeted Italian citizens via its website bitsurge.io and its Facebook page, according to the regulator’s cease order. The project offered investors without blockchain or crypto backgrounds to participate in the virtual asset market by buying the company’s tokens. Bitsurge Token promised 7% to 13% monthly returns in four membership packages – purchasing 25 tokens and having 6% returns, or buying 100, 250 or 625 coins with profits of 8%, 11%, and 13% respectively, CONSOB said.

Project Crypto Green Earth promised 6% annual returns for investments in blockchain-based products for recovering rainforest areas, mainly in Costa Rica, the second regulatory cease order shows.

“[Project Crypto Green Earth] suspended as a precautionary measure, for ninety days, pursuant to article 99, paragraph 1, letter b) of the Consolidated Law on Finance, the offer to the public resident in Italy involving ' Green Earth certificates' promoted on the Facebook page 'Project Crypto Green Earth,'” CONSOB said.

On Tuesday, the administrators of Project Crypto Green Earth’s Facebook page distinguished themselves from the Avalon Life SA, explaining that the account has been inactive for more than eight months.

Last month, CONSOB temporarily suspended three crypto companies for violating the country’s laws.