Swiss cryptocurrency industry organization the Crypto Valley Association (CVA) is investigating allegations of foul play by one of its members after the platform closed down last month, CVA officials confirmed in a statement on Feb. 28.
According to its website at press time, Blue Trading, also known as BlueTrading, shuttered investment services after what it described as a software malfunction, discovered Feb. 21, caused widespread losses of funds.
At the same time, the platform’s owner, BluVenture Group Ltd., has faced considerable controversy over its legitimacy claims from international finance bodies.
“The CVA has been approached by various persons regarding the Blue Trading platform,” the association’s statement reads, continuing:
“We are currently looking into allegations expressed publicly against Blue Trading of inappropriate business conduct, based on the CVA’s General Code of Conduct.”
BluVenture Group faced expulsion from Hong Kong brokerage standards body the Financial Commission in September last year.
A statement issued at the time warned:
“Effective September 26, 2018, BluVenture Group Ltd and its affiliated brands BlueBroker and BlueTrading were expelled from membership with the Financial Commission due to repeated violations and failures to adhere to membership Rules and Guidelines.”
The Hong Kong move was preceded by a warning from the United Kingdom’s finance regulator the Financial Conduct Authority, which accused BluVenture Group of operating financial services without permission.
According to BlueTrading, users currently have until March 15 to withdraw funds from their accounts before the service permanently closes.
“We sincerely apologize for this very disappointing event and wish we could continue operating but it is not possible at this time,” the message on the platform’s website explains.
The CVA, centered in the Swiss town of Zug, consists of a growing number of blockchain and cryptocurrency startups and seeks to build a supportive regulatory environment for the technologies with the local and national government.
In December, the initiative was ranked as the fastest-growing tech hub in Europe.