U.S. and Canadian state securities regulators announced Monday they have
launched dozens of investigations into cryptocurrency scams.
The North American Securities Administrators Association announced the
wide-ranging series of probes on Monday, dubbed “Operation Crypto-Sweep.” The
investigations, some of which have already concluded, are aimed at unregistered
securities offerings and initial coin offerings that promise significant
returns without informing investors of the risks.
A task force convened by the group of state regulators in April has
launched 70 investigations, with 35 already facing completed or pending
enforcement actions.
Regulators have already sent cease and desist letters to several alleged
schemes, including websites that relied on fake addresses and photos to appear
legitimate when seeking investors. Officials said there will be additional
enforcement actions to come against companies looking to defraud cryptocurrency
investors.
“The actions we’ve taken to date are just the tip of the iceberg,” said
Joe Borg, NASAA president and director of the Alabama Securities Commission.
Regulators invited the public to come forward with additional potential
scams, while urging investors to be vigilant in seeking investments in the new
arena.
The move by state regulators to crack down on cryptocurrency scams comes
amid growing attention to virtual currencies by federal regulators, including
the Securities and Exchange Commission and the Commodity Futures Trading
Commission.
“You’re going to see in this space a lot more collaboration and
cooperation going forward,” said Borg.
Click
here for the original article from Reuters.