Generation Zoe has received a securities fraud warning from Colombia.

As per the Superintendencia Financiera de Colombia’s March 1st warning;

Generación Zoe is not supervised by the Financial Superintendence of Colombia.

This is the equivalent of a securities fraud notice in other jurisdictions.

Generation Zoe was a smart-contract Ponzi cycler. The scheme collapsed following a crackdown by Argentine authorities last month.

Generation Zoe’s founder, Leonardo Cositorto, fled Argentina and is wanted by Argentine authorities.

As of February 23rd, Cositorto is believed to be hiding in the Dominican Republic.

Argentine authorities claim an international arrest warrant has been issued through Interpol.

In a blow to Colombian victims of Generation Zoe, the SFC has clarified that in addition to the company operating illegally in Colombia, they have no intention to regulate it.

The products associated with this model are hosted abroad and, therefore, are outside the jurisdiction of the SFC.

This means that recovery of stolen funds from local promoters is all but impossible within Colombia.

This is of particular significance, as Alexa currently ranks Colombia as the top source of traffic to Generation Zoe’s website (35%).

At time of publication Generation Zoe was still online. Pending his arrest, Leonardo Cositorto has floated launching Generation Zoe 2.0.

 

Update 15th March 2022 – Leonardo Cositorto has turned up at a political rally in Colombia. Authorities have not yet arrested him.