Crowd1 securities fraud warning issued in Paraguay
The Comision Nacional de Valores has issued a Crowd1 securities fraud warning for Paraguay.
The CNV is Paraguay’s top financial regulator. On February 26th the regulator issued a public warning, advising against Crowd1 investment.
The CNV identifies Crowd1 as a securities offering. The regulator notes Crowd1 is not registered with the CNV and therefore operates illegally.
It is also illegal to promote unregistered securities. Promoters of Crowd1 in Paraguay face up to three years imprisonment or a fine.
Based on website traffic estimates provided by Alexa, South Africa is the largest source of Crowd1 investment.
To date South African authorities have failed to take any action against the company or local promoters.