The most important role of self-proclaimed industry organizations such as the Crypto Valley Association (CVA) is that of a watchdog over the industry and its members. The Swiss CVA, in particular, positioned itself as a leading crypto institution during the crypto hype of 2017/18. Consequently, CVA acquired quite a lot paying members during the hype one of them was BluVenture Group Ltd – a fraudulent binary option scheme, as we and several hundred victims, who lost their live savings know by now. By now we also know that CVA has been a vehicle that promoted ICOs, celebrated the great future of the blockchain industry and spoke a lot about self-regulation. As can be seen in the many Swiss-related ICO scams, the CVA has failed rather miserably as s watchdog and self-regulatory body. And above all CVA has to answer some questions in the Bluetrading scam.
The BluVenture Membership
Well, unfortunately, fraud happens. Also under the supervision of regulatory authorities such as SEC, FCA, FINMA or BaFin. In this respect, the fraud of BluVentures via the BlueTrading.com Scam could also be treated as a painful but unfortunately happening phenomenon. It’s hard if not impossible to avoid a well-planned online fraud which Bluetrading.com for sure was.
Hiding, Deleting, And Silencing
What must not and should not happen under any circumstances, however, is the lack of willingness to support the investigations in the very best interest of the victims and the industry. Unfortunately, this exactly is the CVA approach currently. The association acts quite similar to the Bluetrading.com Scammers. Messages from investors seeking help on the CVA site have been deleted and CVA representatives do not respond to requests:
- Feb 27, 2019, some victims posted messages on the CVA website. The message was deleted soon after but is still available in Google cache.
- Feb 27, 2019, a single mom who evidently lost her money in the
Bluetradingscam asked CVA for help. Messagewas deleted,error 404.
- Feb 28, 2019, CVA was asked about information on its member
Bluetrading. Messagewas deleted,error 404.
- March 2, 2019, another victim asked CVA for help. His message was deleted. Error 404.
- March 11, 2019, request for support of a
Bluetradingvictim. Online at the time of publishing this article, not yet resolved.
With this 404-approach, CVA not only violates its own values, but loses all legitimacy as an industry organization. In the very best interest of the crypto industry and the many cheated investors, CVA should actively support the investigations. We would expect the very same active approach CVA showed in the crypto hype and the ICO era.
Source: CVA announcement dated Feb 28, 2019
As always, the CVA remains committed to its mission of fostering a healthy blockchain ecosystem and does not tolerate any inappropriate behavior within its membership, particularly when it goes against the values that members sign up to when becoming part of the Association.
The negligent or intentional CVA behavior in the Bluetrading fraud case continued even though CVA announced investigations into the Bluetrading.com scam. On February 28, 2019, an Ian Simpson from CVA announced such investigation into allegations against BluVenture, now a former CVA member. The CVA says that “various persons” have voiced concern about Blue Trading and that it is investigating the public allegations about the firm’s “inappropriate business conduct, based on the CVA’s General Code of Conduct.”
Questions To Answer
CVA has some important questions to answer to help fo fully uncover the scam and find the perpetrators. The answers needed from CVA:
- who has signed the membership agreement and thus the code of conduct (legal entity, directors, beneficial owners),
- contact details of the organisation and persons involved.
- payment details (wallets, transactions)
- have made the required KYC (Know-Your-Customer/Client) checks been made on BluVenture and
- what are the details of the KYC check?
These are all questions that have to be answered immediately in the very best interest of defrauded investors, the industry and ultimately also the CVA. As a self-appointed regulatory authority, CVA has to participate in the clarification. EFRI, representing by now several Blue Trading victims also already reached out to them: no answer up to yet.
Dear CVA people: it’s time to act now to legitimate your institution! Feel free to join the