Key facts:
CoinX, which accepted deposits with cryptocurrencies, reported that it does not receive any more investments.
The platform had stopped paying its users, who fear they will not get their money back.
The National Securities Commission (CNV) of Argentina has published a summons to the CoinX company to cease its activities of “offering investment advice”. The cryptocurrency investment company promised very high returns and for more than a week it had been reporting problems with payments to its clients.
The CNV statement, available for download at the body portalarises “as a result of having been warned of the existence of offers of advice on investments in the capital market (…) where various tools were offered to obtain high profitability, making diversified investments that would allow maximizing returns and minimizing risk”.
Is that CoinX promised those who deposited on its platform a return of 8% per month in dollars, an extremely high number compared to other investment platforms. It is also a difficult figure to guarantee in volatile markets such as cryptocurrencies.
suspicions about the modus operandi of the site emerged since it gained notoriety in the public opinion late last year, just as Generation Zoe was also making headlines for offering very similar potential earnings. Today, its CEO Leonardo Cositorto is arrested and accused of fraud.
The company’s response to the CNV announcement was to reiterate the suspension of investments in the platform, which could be made through the Tether cryptocurrency (USDT) on the Tron and BNB Chain networks, in pesos or US dollars. On his Instagram profile, you can see a message in which they clarify this for their users and alert about possible impostors who ask for data or money on behalf of CoinX.
However, this is not new nor is it a direct consequence of the CNV’s injunction, which is not even prohibitive. A week ago, CoinX had posted on his Instagram account that He was having trouble paying his customers. The post, which was later deleted, said that this was a result of “market volatility” and episodes “of public knowledge”, in apparent reference to the fall of the Terra USD (UST) cryptocurrency and its ecosystem.
Advertising
In the last few hours, CoinX has shared many stories of so-called customers who agree to return their savings. It is striking that some of the accounts that comment on CoinX posts have very few posts and followers, or have been recently created.
In the comments of his posts, however, there are people who claim they haven’t had an answer to their queries yet.
CoinX, between doubts and its jump to popularity
CoinX became known in Argentina since December, when deputy Javier Milei visited their offices, as reported by CriptoNoticias. This earned the legislator several criticisms, given that he had already assumed his seat in Congress by the time he made the publication – presumably sponsored – on his Instagram account.
Likewise, celebrities from Argentina such as models, television hosts and influencers have published content possibly sponsored by CoinX, which has offices in Buenos Aires and El Salvador. Examples of this are Carolina Ardohain, Alejandro “Marley” Wiebe, Candelaria Tinelli and Yanina Latorre.
Despite all the publicity of the last few monthsthere are those who perceive CoinX as a model of a pyramid scheme or Ponzi. As a CriptoNoticias publication describes in this regard, these platforms are characterized by attracting new members to pay the returns of existing investors, until eventually the system collapses.
On Twitter, several people have posted explanatory threads in which the case is analyzed. «I began to investigate CoinX for 2 minutes and I can practically assure you that it is another Ponzi. Get out of there. redflags (red flags) everywhere,” says the author of one such thread.
Regarding this latest warning from the CNV and the suspension of deposits by CoinX, the economist Ignacio Carballo, consultant for Americas Market Intelligence and professor at the Latin American Faculty of Social Sciences, published testimonials of people who claim to have lost “all the money” invested in this platform.
CriptoNoticias consulted with CoinX about these accusations and about the CNV ruling. However, no responses were received at the time of publication of this article.
The basics of CNV to intimidate CoinX
One of the impediments for the firm to offer these services is that both CoinX and its CEO, Juan Manual Malaspina, are not registered with the Agents and Markets Management, detail the post. Neither were they before nor is the registration in process.
In addition, “any intervention in the regime of the public offering of negotiable securities necessarily requires an express authorization from this CNV,” the statement indicates. Those who provide these advisory services must have the appropriateness approval to prove their competence and integrity, says the agency.