He denounced the business holding company Generación Zoe and Leonardo Cositorto before the Attorney General’s Office. What are they accused of?
The NGO Bitcoin Argentina denounced before the Attorney General’s Office (PROCELAC) the business holding Generación Zoe and Leonardo Cositorto, the main person in charge of the firm, for “possible commission of the crimes of fraud, capture of unauthorized public savings and manipulation of the market”.
Precisely, the complaint establishes “the possible commission of the crimes defined in articles 172, 309 and 310 of the National Penal Code” and charges “andn By virtue of the complexity of the facts, to anyone who is criminally responsible for the crimes against property and against the economic order indicated“.
Days ago, the National Securities Commission (CNV) also initiated an administrative investigation against the same company and Cositorto for “the possible execution of a public offer and irregular intermediation in the capital market.”
In addition, the entity issued an international alert on the portal of the International Organization of Securities Commissions (Iosco) and sent specific communications to the relevant regulators in Colombia, Spain and Paraguay, countries where activity by those involved has also been detected.
From the NGO Bitcoin Argentina, they explain that they have a legal area that has been following the actions and public interventions of all the companies of the Zoe group and their managers for a long time.
“There are sufficient elements for justice to investigate and verify whether through coercive coaching, educational training and finances, those who carry out this business group carried out a fraud known as a ponzi scheme or pyramid scheme, in addition to other possible crimes such as unauthorized capture of savings and market manipulation,” they said in a statement from ONG Bitcoin Argentina, a non-profit organization that promotes the development of the local crypto ecosystem.
What is a ponzi scheme?
It is a type of scam that attracts users with the incentive of bringing people together in a program and promises high financial compensation.
One of the requirements of pyramid scams is invite people to go up to the next level and thus access higher investment returns.
Once you’ve invited the number of people you need, you’ll be able to access a product at an incredible price or an exponential profit. The reward for entering new people into the system is always greater than that generated by the main activity, so the incentive is always to recruit, not to sell products or services.
What’s the trick? New partners are needed all the time so as not to be on the side of the scammed. Thus, every time one level up, other people are “floating” waiting to raise themselves to the maximum level.
However, when the base of the pyramid is too large because each new income in turn generates other new income to the program, the chain is broken and 99% of the participants are left out of the profit scheme and lose all their investment.
In the case of Zoe Cash, the company promises exorbitant returns in dollars through a cryptocurrency called “Zoe Cash” that trades under the acronym $ZOE.
According to Honeypot, a system capable of automatically detecting if a cryptocurrency is based on a fraudulent system, the Zoe Cash cryptocurrency has holes and vulnerabilities in its systems.
How does this tool work? The platform simulates a purchase transaction to determine if the token is a honeypot and also includes other checks to detect a possible fraud.
To run the system, you have to paste the address of the cryptocurrency and the result is automatically obtained.
By entering Zoe Cash’s address (which is 0x8d2b2e3dcf0bcad65765d256390c5154d3ba19cf) the page says “get out of there now”.
The CNV investigates the head of Generación Zoe, Leonardo Cositorto
What did the CNV say about the Generación Zoe holding company?
In October 2021, the CNV had for the first time intimidated the company and Cositorto and called for the immediate closure of its operations in Argentina.
“This Commission had already notified in October 2021 the aforementioned companies and Mr. Cositorto, the immediate cessation throughout the country of any public offer of negotiation or other legal act with negotiable securities aimed at people in general, sectors or specific groups, “the CNV said in a statement.
Recently, he again initiated actions against Generación Zoe and pointed out that this firm is not regulated by the entity.
“The CNV takes these measures in exercise of its powers established by Law No. 26,831 and in order to protect the integrity and transparency of the national capital market, together with the protection of investors. In this line, the execution is being analyzed. of additional measures before the possible illegal capture of savings of the investing public “, affirmed.