Cryptocurrencies, the first fall of an Italian company in Veneto

New Financial Technology, a startup active in the crypto market without authorization, has blocked access to customer accounts. Thousands cry out for scam

Thousands would be victims of another cryptocurrency crash. The news is that for the first time this happened in Italy. It is in Silea, a town of 10 thousand inhabitants in the Treviso area, that New Financial Technology was born, the company that last Friday due to “unforeseen internal problems” communicated to its clients the blocking of their accounts, from which they cannot withdraw money despite the fact that the administrators had put pencil and paper in the contract documents that the money would be “guaranteed and safe”.

The promise of 10% interest every month

The company promised 10 percent interest every month, thanks to an unspecified scheme of algorithms capable of buying and selling cryptocurrencies on different platforms, profiting from the price difference.

Part of the contractual conditions offered by New Financial Technology

And in fact New Financial Technology paid the maxi-interest for a few months before closing the accounts. On Telegram, investors without money organize themselves. There are those who entered the investment only on July 22 and claim to have lost 10,000 euros in one fell swoop, the minimum investment, who even say they have burned 100,000.

Screenshot of Telegram chat “Those scammed by new financial technology”

Long legal routes

But the risks of never seeing your money again are real. In fact, there are no automatic safety nets and investments are at risk. The legal avenues are expected to be endless: according to the lawyers, two of the three directors would be unreachable in Dubai, New Financial Technology is based in London (and other companies in Sweden and in Dubai itself), an asset structure that is anything but solid and does not appear among the entities authorized by the Consob to act as a financial operator.

Citizen Defense Movement: “Possible Ponzi Scheme”

In the last hours, the only available director has promised investors to return the money in four months, but few believe it. According to the Movement for the Defense of the Citizen of Treviso, which has received up to 400 complaints these days, it would be the most classic of the “Ponzi scheme”, in the name of the famous swindler Charles Ponzi. That is to say, a house of cards based on the adhesion of new investors: while new money continues to be paid, it is used to pay interest to those who had previously entered. But when the mechanism breaks down and new members dwindle, the house of cards collapses and the fraudsters run off with the capital. Now warnings and lawsuits from lawyers are being prepared to launch investigations, including against brokers, a dozen investors who have helped the company spread the word and recruit new members, for a fee.

Charles Ponzi in 1927 (Getty)

The crypto rush

The avalanche that hit the crypto world in 2022 has submerged solid and recognized realities: the best-known case is that of the Celsius platform that went bankrupt, taking with it almost 4.7 billion dollars from its users. While Binance was forced to shut down its accounts for a few hours in June, so was Asian exchange Zipmex in July. And with Bitcoin down 50 percent so far this year, the scams will keep popping up.

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