Resolution no. 20694

Suspension, pursuant to Article 101, paragraph 4, letter b), of Legislative Decree no. 58/1998, of the advertising made by Mr Alessandro Brizzi on his own Facebook page, related the offering to the public for purchase of the 'CRYPTON' cryptocurrency

LA COMMISSIONE NAZIONALE PER LE SOCIETÀ E LA BORSA
[THE NATIONAL COMMISSION FOR COMPANIES AND THE STOCK EXCHANGE]

HAVING REGARD TO Law no. 216 of June 7, 1974, and subsequent amendments and additions;

HAVING REGARD TO Legislative Decree no. 58 of February 24, 1998, and subsequent amendments and additions ('Consolidated Law on Finance');

HAVING NOTED that supervision by CONSOB has resulted in the acquisition of evidence about the Crypton Ltd company, with alleged registered office in Belize, offering to users of its website (https://cryptoforce.world) the opportunity to invest in a new cryptocurrency called 'CRYPTON' that would ensure that very high returns correlated to the quantity of cryptocurrency held, generated by an algorithm, in proportion to the quantity of cryptocurrency purchased;

HAVING FOUND that the Crypton Ltd company on the https://cryptoforce.world website also promotes a Multi-Level Marketing scheme defined as one of the two ways to 'receive an income from Cryptoforce';

HAVING FOUND that the said scheme is also promoted through the https://www.facebook.com/Alessandro.brifixing.1976 Facebook page, attributable to Mr Alessandro Brizzi;

HAVING FOUND in particular that the aforementioned Facebook page displays, inter alia, a document that certifies the appointment of Mr Brizzi as the 'regional director of the company CryptoForce Ltd', as well as some posts on the said scheme;

HAVING FOUND that the said Facebook page also displays multimedia links that direct users to the https://cryptoforce.world website and include the indication of the referrer, so as to make his/her identification possible for payment of commissions;

CONSIDERING therefore, that the purchase of the Crypton cryptocurrency promoted by Cryptoforce Ltd through its corporate website consists of the offering of financial products to the public as defined by Art. 1, para. 1, letter t), of the Consolidated Law on Finance, i.e., 'every communication addressed to individuals, in any form and by any means, that presents sufficient information about the conditions of the offer and the financial products offered so as to put investors in a position to decide whether to buy or subscribe these financial products, including placement through qualified parties';

HAVING FOUND that in the said Facebook page the investment scheme proposed by Cryptoforce Ltd is presented with a clearly encomiastic tone as a very much profitable opportunity and expressions are used suitable to solicit the investor's decision ('everyone enjoys their 4.5x100... That's not difficult to understand. If you subscribe you gain, if you are outside you eat your heart out');

HAVING ESTABLISHED therefore, that through his Facebook page, Mr Alessandro Brizzi is advertising Cryptoforce Ltd.'s offering to the public in order to promote subscription to it;

HAVING ESTABLISHED furthermore, that the said advertising is aimed at the public resident in Italy as the contents of Mr Alessandro Brizzi's Facebook page are only available in Italian;

HAVING ESTABLISHED that no information prospectus was published for the said offering;

HAVING CONSIDERED that Art. 101, para. 1, of the Consolidated Law on Finance provides as follows: 'Prior to the publication of the prospectus is prohibited any form of advertisement concerning public offerings of financial products other than community financial products';

HAVING CONSIDERED, therefore, that there is a well-founded suspicion concerning the performance of an advertising activity related to the public offering of shares in infringement of the aforementioned law and that this activity is still ongoing;

HAVING SEEN Art. 101, para. 4, letter b) of the Consolidated Law on Finance, pursuant to which in the case of a well-founded suspicion of infringement of the provisions on advertising activities, CONSOB may, 'suspend a precautionary measure, for a maximum ninety days, the further spread of an advertisement relating to a public offering of products different from those referred to in paragraph a), in the event of an ascertained violation of the provisions or rules referred to previous paragraphs or related regulations';

HAVING CONSIDERED that, given the existence of the abovementioned conditions, we acknowledge the urgency in adopting the provision identified above;

RESOLVES AS FOLLOWS:

The precautionary suspension, for a period of 90 days, of the advertising by Mr Alessandro Brizzi on his own Facebook page, of Cryptoforce Ltd.'s offering to the public for the purchase of the Crypton cryptocurrency.

This Resolution will be brought to the attention of those concerned and published in CONSOB's Bulletin.

This measure may be appealed before the Regional Administrative Court of Lazio within 60 days of the date of notification.

November 14, 2018

THE DEPUTY CHAIRMAN
Anna Genovese