Swiss authorities eliminate E-Coin fraud scheme

The main state regulator, the Financial Market Supervisory Authority, or FINMA, decided to forbid the operations of E-Coin, the company that gave its clients coins which in fact were not a real cryptocurrency.

How is that possible? The FINMA regulators have explained it in a press release. According to the statement, digital coins we all know are stored on the distributed ledgers and its transactions and operations are blockchain-approved. These tokens E-Coin was issuing, however, were stored on local servers, which made the investors much more vulnerable to fraudsters. Also, this company has done something that no financial regulator of any country would ever forgive: lied to customers by telling that these coins are based on valuable assets.

Along with E-Coin, QUID PRO QUO and DIGITAL TRADING AG with Marcelo Group AG are mentioned as either producing fake cryptocurrency coins or closely working with entities that did so. The FINMA is already doing all in its power to bankrupt all accused parties and advises the Swiss residents to look through the educational materials they have prepared on their website.

Although the statement about “fake cryptocurrencies” might look frightening after all Chinese news, the Swiss authorities are proving to be able to separate normal altcoins from fraudster tools.