Togacoin, a crypto project which claims to focus on creating a “new generation of mining operations” has received a warning from the Italian Securities Regulator, Commissione Nazionale per le Società e la Borsa (CONSOB).
CONSOB stated in its newly released blacklist that Togacoin, as well as two other firms, SmartChoice and FxBreeze, do not have operating permission from Italian authorities and as such should stop operations.
The public was also through the notice warned against putting money into the project or do so at their own risk.
Aside from the regulatory call, information available on Togacoin's website does little to show that the project is legitimate at least to a significant extent.
A Revenue Calculator is prominently featured on the website's homepage, with a message promising investors a return of 239% in one year, and 654% return in three years.
These high profits would be generated from the company's plan to create a data center that reforms mining operations in a way that is “climate-friendly, less subject to the fluctuations of energy price and, finally, more profitable and safe.“
The project also states in its 33-page whitepaper that “100% of the mining operations proceeds will be distributed amongst the token holders” after their first year in business.
The project's proposed token sale date is April 2019, although the regulatory sanctions will likely lead to low or no sales of the ICO tokens.
Meanwhile, Togacoin is now the third crypto project to get on the CONSOB blacklist in the last two months.
Stmarket.co reported in December that two other projects, Bitsurge, and Green Certificates were marked as "fake" by the Italian Securities Regulators for organizing fraudulent schemes.
Across Italy's border, Belgian Regulators has also made efforts it protect citizens from fraudulent crypto schemes. Over 113 crypto-related crime websites are recorded in Belgium’s Financial Services and Markets Authority (FSMA) blacklist.
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