ONGOING IMPORTANT UPDATES

FINAL UPDATE ON AML/KyC PROCESS

Dear SCAVO community,

We have been working hard on everything the post-ICO process entails and we want to share with you our current situation. Our project has always been focused on the community and we turn to you on this new stage we want to undertake together.

A LITTLE HISTORY

✍️ RESEARCH AND DEVELOPMENT PROCESS (R&D)

Our project was born in 2014 as a private initiative with the objective of building fully sustainable and self-sufficient large-scale mining farms that involves the entire crypto-community: miners, traders, hodlers, etc …

Throughout the different stages, we were able to create and develop our own sustainable technology, thus achieving our goal regarding the sustainability of the project.

All this R&D process was financed with own contributions, which gave us total freedom to choose how to best continue our project.

✍️ OPENING THE PROJECT TO THE COMMUNITY

Being able to move forward with the project, we evaluated the different alternatives to obtain the next element of our objective: to open it to the community and make you a part of it.

At the same time, resources were needed for the acquisition of the mining hardware and the construction of the different parts that make up the mining farm.

We had different alternatives for this, so we submitted them to a vote and decided to move forward with the preparation and execution of an ICO, without any minimum investment amount and without resorting to private investors or VCs. A true community ICO.

✍️ THE ICO PROCESS

We developed our own platform (you all used it), an run the entire ICO process on it. We raised USD 1,055,877.58 through operations via crypto and fiat (bank transfer, credit cards, and points of sale in Argentina).

The majority of the transactions were carried out in fiat, which conditioned the accreditation of funds to compliance with the “Know your customer” (AML/KYC) process to avoid money laundering.

IMPONDERABLES

✍️ CHANGES IN ARGENTINE LEGISLATION

Between June and November 2018, there were a series of resolutions of the Anticorruption Office of Argentina, which caused certain processes — although mostly already regulated — simple and easy to comply with, to become extremely strict and meticulous. Among them, the origin of money justification for all types of fiat payments (this may be obvious to people from other parts of the world, but in all of South America and especially Argentina, this was a bureaucratic procedure without much documentation. We are just NOW facing this at a country level, with heavy impact on both companies and individuals).

✍️ DELAYS IN SENDING DOCUMENTACION

From the beginning of our ICO, we had two methods enabled for the required identity verification.

One was available directly on the user profile section of the web. From it, you could upload all required documents and visualize the validation progress in real time.

The second one was implemented by request of the community. We enabled the option for documentation to be sent via email.

After some stages of the ICO, we noticed that many of the investors had gone through the identity validation; but a large number had not.

Upon noticing this, we contacted each one of them so that they could finish the process before the ICO ended.

The financial institutions of our country gave us 60 days (until December 30, 2018) to present all necessary documentation to release the fiat payments. Once this period was over, they would execute a routine of reversing the transaction, returning funds to source for all people whose documentation was incomplete.

During these 60 days, in addition to sending the corresponding tokens to those who had complied with the required documentation, we concentrated on presenting the documentation required by the different collecting entities. We prepared folders of each investor whose documents were complete; and contacted via email, phone or physical address requesting the pending documentation to each one of those who were not, so that we could the entities to release the corresponding funds to us.

Despite dedicating all our effort to this, we were unable to complete the documentation folders for an important number of investors.

That said, of course we take full responsibility for not having foreseen this situation and let ourselves be surprised by the changes in the legislation mentioned in the previous point.

GLOBAL CRYPTOCURRENCY MARKET

As we all know, cryptocurrencies plummeted during 2018. Many thought it would be a temporary depression, however, prices simply continued to fall.

The bear market has being going for 404 days now, as of this Friday January 25. In exactly one week, on February 2, the longest bear market mark of 2014–2015 will be broken, officially making this the longest bear market in the history of cryptocurrencies.

Everything we collected during the ICO has been considerably devalued.

CURRENT SITUATION

Although we have our own information, we have decided to wait for the official report, which will include the final data of our real current situation. Once we have that, we will report you -our beloved community that makes SCAVO possible- the exact situation. In the course of the next week, we will have this information.

The project will continue its set course as it has been until now. This means that we continue with the construction of the data center where the servers, the ASICS miners and the GPU-based miners will be housed. Likewise, we will have the scavo.farm website operational by the first days of February and we will start the mining operations from the second half of February.

We are consulting with our accountants and hired lawyers, one of them with a specialty in cryptocurrencies (new specialization, difficult to come by in Argentina) to help us evaluate the next steps to follow.

We have many interesting ideas that can compensate the consequences of the mentioned imponderables! We hope to be able to count on you, as we have done so far. Slowly, but without pause, we are becoming an increasingly solid community, which expects to see the results towards where we are focusing all our energy!

Guillermo J. Nardoni
CEO — SCAVO Technologies