NGO Bitcoin Argentina warns of an increase in scams associated with investing in cryptocurrencies at the local level – DiarioBitcoin

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NGO Bitcoin Argentina warns of an increase in scams associated with investing in cryptocurrencies at the local level - DiarioBitcoin By Angel Di Matteo @shadowargel

In this regard, NGO Bitcoin Argentina highlights that scammers take advantage of the lack of knowledge and the complexity of the issue to attract victims, offering to mediate in the process and inviting them not to miss out on “unique opportunities.”


The non-profit organization that aims to promote education about cryptocurrencies and the use of Blockchain, NGO Bitcoin Argentina, warns about the proliferation of scams with false investment programs in digital currencies at the local level, especially in cities such as Mendoza, Córdoba, Tucuman, Catamarca and La Rioja.

Alert with scams associated with cryptocurrencies in Argentina

The information was published in a press release published by the NGO Bitcoin Argentina, in which they alert that through the Legal Clinic and other meetings for training purposes have detected the incidence and increase in cases of scams in the aforementioned locations, which take advantage of the lack of knowledge about the operation of digital currencies, as well as the urgency of investors to avoid losing valuable assets. business opportunities.

In this regard, the CEO of the NGO Bitcoin Argentina, Javier Madariaga, commented:

“In Argentina there is no fund authorized today to capture savings for investments in cryptocurrencies. We are seeing that pyramid schemes or Ponzi schemes with crypto are being repeated in different provinces of the country, and the common denominator of these scams is an intermediary that promises great economic profitability by making a capital contribution, something that is not guaranteed in any investment ” .

And add:

“[Modelos como] Telar de la Abundancia, Omega Pro, Intense Live are some examples of this type of pyramid fraud that occurred in the past and that with great concern we are detecting its resurgence in provinces such as Mendoza, Córdoba, Tucuman, Catamarca and La Rioja, among others. . They do it with new names, made up with massive and glamorous launch events that are promoted by famous personalities, athletes or influencers ”.

A long-standing problem

In the statement, the members of the organization warn that the commercial boom that these assets are generating generally makes people feel more interested in them, which creates an opportunity for bad actors who seek to mediate in the purchase process, thereby which introduce offers that may well seem quite simple and lucrative but in the end they end up stealing the funds of the victims.

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In this regard, the coordinator of the Legal Clinic, Victor Castillejo, warns that unfortunately it is difficult to distinguish a legitimate business from another that is not, but invites interested parties to pay close attention to certain elements that can function as red flags to identify misleading offers:

  • Excessively high investment returns (above 8% per year in dollars generally).
  • Returns depend on an entity.
  • The one that manages the investment is not an entity legally registered in Argentina or with the respective authorization to operate in the financial market.
  • Executives of the entity without a clear trajectory, as well as the fact that they boast wealth or an ostentatious life from the derived earnings.
  • Very expensive events or marketing campaigns to promote “opportunities that will never happen again”.
  • They ask for more money for operational or processing expenses once capital is invested.

In that sense, Castillejo commented:

“In situations like these, we always recommend great caution and, if there are doubts, wait and seek advice. From the NGO we attend to this type of queries and we offer a hand so that those who want to invest do so safely. We want a healthy growth of the crypto world, and for that we need to do everything possible to end these types of scams. “

Beware of “Brokers”

Finally, the organization also took advantage of and warned stakeholders about the “Brokers”, figures under which most of the aforementioned scams are proliferating.

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On the subject, the NGO Bitcoin Argentina warns:

“What are commonly known as“ brokers ”are natural or legal persons that function as intermediaries between investors and regulated markets. In general, they work on commission, and to fulfill this role it is necessary to have different authorizations that indirectly certify the ability to carry out certain transactions in the corresponding regulated markets ”.

And they add:

“Although investment in cryptocurrency markets, in principle and for now, are not equivalent to regulated markets, those who seek to invest in these assets should take this into consideration since” brokers “may appear that do not necessarily have the capacity to perform. investment advice, and that can eventually generate losses of the invested funds as well as turn into a scam ”.

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Source: Announcement NGO Bitcoin Argentina

Version by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

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