CVM reviews the pyramid of cryptocurrencies that the PF focuses on

The Securities and Exchange Commission (CVM) has scheduled a verdict for this Tuesday (11) against Trader Group, a cryptocurrency pyramid targeted by federal law enforcement in 2019.

After several complaints against the company, the PF launched Operation Madoff in Espírito Santo in May 2019. The company, headquartered in the southeastern Brazilian state, raised millions of reais from investors, with promises of large monthly fixed profits.

At the time, the PF managed to seize 4,000 bitcoins from the company. The Brazilian courts finally agreed to sell the coins on the market, to convert the values ​​into Brazilian real.

Months after Operation Madoff, the CVM issued a warning to the market and is now considering the company’s offer.

CVM reviews Trader Group for irregular offers

In a judgment open to the public next Tuesday, the CVM will review the investment offerings of Trader Group Administração de Ativos Virtuais EIRELI, TG Agenciamentos Virtuais Ltda and Wesley Binz Oliveira.

Wanted by the municipality since 2020, neither the companies nor their managing partner have put up a defense in the Sanctief Administrative Process.

They are under investigation for offering unauthorized investment contracts with proceeds linked to the IBOVESPA and even alleged cryptocurrency transactions.

According to a report by director João Accioly, which Livecoins has accessed, “the prosecution contends that there were clear acts of public distribution in the form of offering the investment opportunity, sufficient to characterize a public offering of security.

Since the company a stop order on the market since 2019, in addition to the fact that activities have been suspended following investigations by the federal police, the CVM process should complete penalties against the scheme this Tuesday.

Company had its own cryptocurrency that harmed investors

Another analysis conducted by the CVM in the Trader Group case concerns the offering of a financial pyramid cryptocurrency, TGPAR.

To invest in cryptocurrencies with the company, investors had to purchase the purported currency, which was available in the customer’s account. Trader Group thus claimed to work with arbitrage, currencies and profits were deposited into its own cryptocurrency.

The CVM also analyzed whether the company has a utility token and should determine the company’s future in Tuesday’s verdict.

According to the autarchy, the session is open to the public and will take place in person in the auditorium of CVM’s headquarters (Rua Sete de Setembro, 111/34th floor, in the center of Rio de Janeiro). It will also be possible to follow the session via video conference, via the link https://cloud.netglobe.com.br/webcast/sessao, simply filling in the name and email fields to access the room.

Source: Live Coins

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