Home Cryptocurrency States Unveil Massive Cryptocurrency Investment Fraud Crackdown

States Unveil Massive Cryptocurrency Investment Fraud Crackdown

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States announce joint crypto investment fraud crackdown: Operation Cybersweep

Operation Cryptosweep, a massive joint crackdown on Initial Coin Offerings and cryptocurrency-related investment products, was unveiled today by over 40 state and Canadian provincial securities regulators.

Nearly 70 inquiries and investigations and 35 pending or completed enforcement actions since the beginning of May is just the tip of the iceberg for Cryptosweep, North American Securities Administrators Association President Joe Borg said.

“The persistently exploitation of the crypto ecosystem by fraudsters is a significant threat to Main Street investors in the United States and Canada,” said Borg.

He pointed out the initiative is modeled after a NASAA-led state and provincial fight against web stock fraud in the late 1990s during the dot.com bubble.

In addition to joining forces among themselves, the NASAA chief said the state and provincial regulators will be coordinating with the Securities and Exchange Commission and the Commodity Futures Trading Commission.

“We all have limited resources. You are going to see a lot more collaboration,” said Borg, who also serves as director of the Alabama Securities Commission acknowledged.

While acknowledging not every ICO or cryptocurrency related investment is fraudulent, Borg warned investors should treat all with caution.

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States announce joint crypto investment fraud crackdown: Operation Cybersweep

Operation Cryptosweep, a massive joint crackdown on Initial Coin Offerings and cryptocurrency-related investment products, was unveiled today by over 40 state and Canadian provincial securities regulators.

Nearly 70 inquiries and investigations and 35 pending or completed enforcement actions since the beginning of May is just the tip of the iceberg for Cryptosweep, North American Securities Administrators Association President Joe Borg said.

“The persistently exploitation of the crypto ecosystem by fraudsters is a significant threat to Main Street investors in the United States and Canada,” said Borg.

He pointed out the initiative is modeled after a NASAA-led state and provincial fight against web stock fraud in the late 1990s during the dot.com bubble.

In addition to joining forces among themselves, the NASAA chief said the state and provincial regulators will be coordinating with the Securities and Exchange Commission and the Commodity Futures Trading Commission.

“We all have limited resources. You are going to see a lot more collaboration,” said Borg, who also serves as director of the Alabama Securities Commission acknowledged.

While acknowledging not every ICO or cryptocurrency related investment is fraudulent, Borg warned investors should treat all with caution.

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