A fake cryptocurrency scam in Switzerland has been shutdown by the authorities. This new cryptocurrency called the 'E-coin' has been termed illegal and Swiss authorities have decided that it does not fulfill the requirements of a cryptocurrency. Where other cryptocurrencies are decentralised and use blockchain technology, the 'E-coin' is kept on private servers and the company issuing the coin has complete control of its clients coins.
The authorities have also disclosed that the investment's collected by the company for this ICO are close to 4 million Swiss francs. The company has also worked with 2 other companies to make a platform for trading the E-coin. The Swiss authority which has shutdown this coin is called Financial Market Supervisory Authority (FINMA).
FINMA has stated that they welcome innovation, but when innovation based business models are used for illegal activities they have to intervene to stop it before investors are hurt. FINMA has seized assets which are approximately worth 2 million Swiss francs, FINMA has also stated that legal proceedings will be done against all 3 companies involved in this scam and has also told that they will be liquidizing the assets of these companies.
(Image taken from Google)