On February 28, 2019, the Crypto Valley Association (CVA) in Zug, Switzerland, announced an investigation into allegations against former digital trading firm Blue Trading, a 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.”
The CVA emphasized its desire to adhere to all government regulations and internal guidelines:
“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.”
Although the Blue Trading website is no longer accessible, reports indicate that the firm stopped operations after it discovered a software malfunction on February 21, which caused many investors to lose funds.
The CVA’s investigation into Blue Trading may be linked to actions taken against the firm’s parent company, BluVenture Group Ltd. In May 2018, the UK’s Financial Conduct Authority (FCA) issued a public warning that cautions British investors not to conduct business with the BluVenture Group. The warning claimed BluVenture had failed to register with the FCA but was still “carrying on regulated activities which require authorization.”
A few months later, the Financial Commission, a dispute resolution network, revoked the BluVenture Group’s membership from the organization, along with all its “affiliated brands,” for repeatedly failing to adhere to membership regulations. It said: “[T]he Financial Commission will not tolerate when members fail to uphold their obligations.”
Let’s hope that the CVA’s investigation sheds some light on what, exactly, Blue Trading did wrong.
Nathan Graham is a full-time staff writer for ETHNews. He lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.
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