• Argentina’s Central Bank Investigates Companies Offering ‘Extraordinary Returns’ on Crypto Asset Investments

  • Argentina’s Central Bank has announced that it is investigating cryptocurrency investment firms. The bank specifically mentioned that they are looking into organizations who are promising spectacular returns on bitcoin investments that are not reasonable. According to the bank, these companies may be operating as Ponzi schemes, and it is presently investigating the prospect of taking legal action against them.

    Argentina’s Central Bank is looking into cryptocurrency investment firms.

    Yesterday, the Central Bank of Argentina issued a statement outlining the actions it is taking against some bitcoin investing firms. The bank declared that it is investigating several organizations that offer “returns through operations with crypto assets and cryptocurrencies that are not compatible with reasonable parameters in financial operations.” The bank is also warning consumers against the use of these platforms, the performance of which and the danger of which cannot be evaluated by the institution.

    The bank has previously taken action against these companies in several parts of the country, inspecting them through the Superintendency of Financial and Exchange Entities and issuing cease and desist orders. The bank will now take legal action against the directors of these entities.

    Intensive Activities

    Some of these suspected organizations have concentrated their efforts in specific provinces of the country, employing public relations campaigns as a luring factor to attract new investors. The Central Bank of Argentina discovered similar activity in two regions, La Rioja and Catamarca, with the goal of enlisting followers to participate in “non-transparent asset management schemes.”

    Scams involving cryptocurrency are not new in Argentina, but they have increased this year. Earlier this year, the NGO Bitcoin Argentina issued a warning against this type of fraud, stressing that such groups are taking advantage of the popularity of crypto assets in the country. At the time, the organization’s CEO, Javier Madariaga, stated:

    We are witnessing the replication of pyramidal or Ponzi schemes with cryptocurrency in various provinces of the country, with the common denominator of these scams being an intermediary who promises a high economic return in exchange for a capital contribution, which is not guaranteed in any investment.

    Regarding these operations, Argentina’s Central Bank has also begun to take action in order to control the rise of these activities. The organization said that it is currently contacting these firms to request that they refrain from engaging in investing operations, and that it is considering legal action against the alleged Ponzi schemes.

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