Switzerland’s Financial Market Supervisory Authority (FINMA), has reportedly shut down three companies for allegedly running a cryptocurrency scam on September 19.

The three companies; the Quid Pro Quo Association, Digital Trading AG and Marcelco Group AG have been reportedly shut down because of their connection with the sales of ‘E-Coin’, without the proper authorisation.

According to FINMA, the E-Coin was not decentralised, like the cryptocurrencies and instead were completely under the control of the sellers.

According to the agency, the three companies accepted the funds through E-Coin, totalling to at least four million Swiss francs, exploiting several users and operated both legal tender and E-coins accounts for them.

Additionally, the agency also added, “This activity is similar to the deposit-taking business of a bank and is illegal unless the company in question holds the relevant financial market license.”

FINMA is keeping a close eye on other fraudulent crypto schemes apart from E-Coin.

FINMA also revealed in its release that it had warned other companies, indulging in offering fake cryptocurrencies. They are at the same time investigating other groups for possible illegal cryptocurrency sales and has warned people interested in cryptocurrencies to ensure they are protected.