While some crypto users dislike regulators as they are often clashing with some aspects of decentralized cryptocurrencies, it is undeniable that some of them are very important for the development of the ecosystem because they chase scams and shut them down.

Now, the Italian securities financial regulator, known locally as the Comissione Nazionale per le Societa de la Borsa (CONSOB), has done its job and found out a new cryptocurrency that is actually a scam: Togacoin. Soon after the entity was able to discover the existence of this scam, it has blacklisted it and published it on its public records.

At the time of the report, other similar companies like Smart Choice Zone and Fx Breeze, a forex exchange, were also denounced as being scams and added to the blacklist of the entity for not being trustworthy.

According to the securities watchdog, Togacoin is a scam which promises a very high return on investment using cryptos as a buzzword to find gullible investors. The company offered binary options and used a revenue calculator on the site that promised a return of 240% in a single year or even over 650% after three full years of investing.

One could even be fooled into believing that the company was a legitimate effort of investment as it had a white paper of 33 pages and a detailed outline of the company’s “plans”, which included crypto mining operations that would be more safe and friendly to the planet. Obviously, this was not the actual truth, the company was only trying to find people to scam.

Togacoin and the other two companies are far from the first ones that CONSOB denounced and put on its blacklist. Other two crypto-related projects were also marked as scams last year, in December 2018.

The two projects that were suspended at the end of the year were Green Energy Certificates and Bitsurge Token, both which stemmed from the same company, Avalon Life, a scam company set outside of Europe but landing its scams in the country.

At the time, the CONSOB issued a cease and desist order for the projects and for Avacrypto, which was owned by Avalon Life.

In November 2019, CONSOB also found fake crypto companies and also sent out cease and desist orders, as well as blacklisted the companies: Eagle Bit Trade, Cryptoforce and Richmond Investing.

As the market begins to get even more swarming with scams and low-quality projects, the work of these regulators is important to warn the investors which are not savvy enough to avoid these companies entirely.

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