Switzerland issues warning on fake cryptocurrencies, shuts down E-coin

[zycrypto]

Switzerland`s financial market authority board has just issued a warning on fake cryptocurrencies, and shuts down providers of alleged scam coin, E-COIN.

In the Announcement, FINMA stated that the providers of E-Coin has reportedly received some million swiss francs made from public deposits, without having a valid banking licence, however some legal entities were involved in the E-Coins production and has been launched bankruptcy proceedings by finma against the legal entities.

Read More => https://zycrypto.com/swiss-shuts-fake-crypto-ecoin/

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[Emoclaw]

This is amazing news and really contributes to the health of cryptocurrencies in general.
I hope more countries follow Japan's & Switzerland's example (and not China's).

[krauzzer02]

That's one of the good news for the crypto currency world, now a days there's a lot of scammers and hackers that create's fake and scam coins, I hope the government of each country who support digital currency will act against this fraud maker people, following the great example of Switzerland who protects it's people from being scammed and worst, being your business, firm and entities bankrupt

[rebel92]

That's one among the nice news for the crypto currency world, currently a days there is a heap of scammers and hackers that create's faux and scam coins, I hope the govt of every country WHO support digital currency can act against this fraud maker individuals

[Karpeles]

What is exactly a fake cryptocurrency?
Did they promised to deliver a coin only to grab money and never intended to deliver a coin?
Or was the problem the lack of a license

[eckmar]

What is exactly a fake cryptocurrency?
Did they promised to deliver a coin only to grab money and never intended to deliver a coin?
Or was the problem the lack of a license

Well they probably consider fake coins same ones that we call here shitcoins.

Switzerland is already the number one country for all banking, looks like they will be the number one for cryptocurrencies as well. Smart move by them.

[severaldetails]

Actually I have not heared about this news, but if Switzerland is aiming at specific coins that are used to scam the investors, they have my support if they want to take them out.
On nice thing I have noticed the past few days: the news reporting about bitcoin is brightening up.
China is not the all dominating topic anymore.

[pixie85]

How do you recognize if the coin is fake or not. You'd have to know the plans of its devs, because if they own a large number of coins and  decide to dump and abandon the project any coin can turn into shitcoin. It's especially easy to do early on the way when a coin doesn't have a large market cap.

[Kemarit]

Actually I have not heared about this news, but if Switzerland is aiming at specific coins that are used to scam the investors, they have my support if they want to take them out.
On nice thing I have noticed the past few days: the news reporting about bitcoin is brightening up.
China is not the all dominating topic anymore.

We are all tired of the negativity coming from China so this is very welcoming news for all of us. Switzerland once again made a swift move to stop those scammers and further prevent them getting money from unsuspecting victims. They are bitcoin very and moving to the correct direction unlike China we took a step back.

What is exactly a fake cryptocurrency?
Did they promised to deliver a coin only to grab money and never intended to deliver a coin?
Or was the problem the lack of a license

As per FINMA itself:

Unlike real cryptocurrencies, which are stored on distributed networks and use blockchain technology, E-Coins were completely under the providers' control and stored locally on its servers. The providers had suggested that E-Coins would be 80% backed by tangible assets, but the actual percentage was significantly lower. Moreover, substantial tranches of E-Coins were issued without sufficient asset backing, leading to a progressive dilution of the E-Coin system to the detriment of investors.

So its pretty obvious that's its not decentralized. They have investigated and found grounds to really shutdown the scammer. Too bad they chose the wrong country and was caught red-handed.

[gustavroy]

But also there is a ICO about swiss bitcoin bank at Switzerland.It called Swissborg.This two news has conflict.I strongly suggest read the whitepaper its kinda such a lovely dream

[stompix]

They shut down a crypto non the less.
There was nothing "fake" about it. Compared to bitcoin any coin that is premined or that is pos or whatever it's also a fake.

What they did wrong was faking their financial reports.
Basically they where selling something promising they would back up with real money like tether is claiming.
Nothing special about the swiss intervention.

But I really would love to see somebody investigating usdT. There will be some fireworks when that is exposed

[JasonXG]

Actually I have not heared about this news, but if Switzerland is aiming at specific coins that are used to scam the investors, they have my support if they want to take them out.
On nice thing I have noticed the past few days: the news reporting about bitcoin is brightening up.
China is not the all dominating topic anymore.

We are all tired of the negativity coming from China so this is very welcoming news for all of us. Switzerland once again made a swift move to stop those scammers and further prevent them getting money from unsuspecting victims. They are bitcoin very and moving to the correct direction unlike China we took a step back.

What is exactly a fake cryptocurrency?
Did they promised to deliver a coin only to grab money and never intended to deliver a coin?
Or was the problem the lack of a license

As per FINMA itself:

Unlike real cryptocurrencies, which are stored on distributed networks and use blockchain technology, E-Coins were completely under the providers' control and stored locally on its servers. The providers had suggested that E-Coins would be 80% backed by tangible assets, but the actual percentage was significantly lower. Moreover, substantial tranches of E-Coins were issued without sufficient asset backing, leading to a progressive dilution of the E-Coin system to the detriment of investors.

So its pretty obvious that's its not decentralized. They have investigated and found grounds to really shutdown the scammer. Too bad they chose the wrong country and was caught red-handed.

Yes you are right, the silly scammer is not so bright. Definitely the wrong country to mess around in. Something I don't understand is about the currency being backed up by assets. It doesn't matter because even the US treasury backs up the current money in circulation and it doesn't have to either. So that was a bad point to whoever said that.

[leopard2]

They shut down a crypto non the less.
There was nothing "fake" about it. Compared to bitcoin any coin that is premined or that is pos or whatever it's also a fake.

But I really would love to see somebody investigating usdT. There will be some fireworks when that is exposed

No. No, no no no.

E-coin is not a crypto, just like Ripple is not a crypto.

USDT is a crypto, there is real USD inside of a token that is traded on the public blockchain (Omni). It is just as real as any other token on Omni or Ethereum. XRP or E-coin is NOT!! on a public blockchain. That is the key.

So Finma is actually smart to know the difference. They will not ban USDT or BTC but XRP? not so sure.

E-Coin is somewhere between Ripple and Onecoin, IMHO  

[orions.belt19]

That's one of the good news for the crypto currency world, now a days there's a lot of scammers and hackers that create's fake and scam coins, I hope the government of each country who support digital currency will act against this fraud maker people, following the great example of Switzerland who protects it's people from being scammed and worst, being your business, firm and entities bankrupt

I haven't heard about e-coin but I hope it didn't affect anyone else in Switzerland.

Yes, its good to hear that the government of Switzerland has made efforts to guarantee safety for its citizens and cryptocurrency users. These days there are a lot of shit coins and scams so we should all be cautious. Switzerland is setting a good example and hopefully the other countries would do the same. Instead of just banning Bitcoin and cryptocurrency totally, actions like this should be done instead.

The government of my country has made a public statement for the bitcoin users to be cautious of the use of cryptocurrency and to be wary of scams.

[LTU_btc]

Good news. It's not first time when fake coins are using name of Switzerland. I remember another similar coin - Swisscoin (don't know it still exists or no). They were claiming that this coin issued by central bank of Switzerland. It's good that Switzerland are fighting against such coins, because they don't have right to use name of country in their fraud operations. And such coins givs bad impact for the whole crypto world.

[DoublerHunter]

This is a great step up for the country of Switzerland for shut downing the fake cryptocurrencies because it will help the whole market of the cryptocurrencies to be clean and not included in fake cryptocurrencies. We should do it frequently so we can have remove a lot of fake cryptocurrencies that is just created for scamming people.

[Ucy]

In the Announcement, FINMA stated that the providers of E-Coin has reportedly received some million swiss francs made from public deposits,

The bolded is a classic example of Crypto company deviating from what Cryptocurrency ought to be. Why receive in local currency when there are available alternative like Bitcoin, Ethereum or his own coin.
Switzerland did the right thing. Being a Crypto friendly country doesn't give anyone the right to stu***ly abuse their system.

[Ljanesanti]

This is very interesting. To think that this certain country give high value and priority to bitcoin should be acknowledged. Instead of wiping off the profitable industry they made a solution and action upon it basing on their experiences and knowledge.

[Pab]

E-Coin it was financial service,as you see scrutinity is needed .All that crypto market is to big and will be bigger.But in Switzerland scamers will hire best lawyers thay will be sentenced for two years of luxury prison and will enjoy his wealty lifes untill the end of his days

[giveen]

This might not be a fake coin but the mistake they did was to take funds directly from the public the meaning for a ico is to raise funds online and according to the law it is surely illegal but no regulations are made till date except china , us. If you want to raise funds from public it would be like issuing of shares to public and the amount is decided by the regulator.
My point is raising cash is illegal but raising online won't cause any issues like it happened in this case.