Securities regulators in the US and Canada have intensified their effort to clampdown cryptocurrency scams. Their latest move is the launching of operation crypto-sweep against cryptocurrency scams.
During the event hosted by the North American Securities Administrators Association (NASAA), securities regulators announced launching dozens of investigations into potentially fraudulent cryptocurrency investment products. According to The Washington Post, this is the largest coordinated cryptocurrency crackdown to date by state and provincial officials of its kind.
The investigation dubbed “Operation Crypto-Sweep,” consists of “nearly 70 inquiries and investigations and 35 pending or completed enforcement actions since the beginning of the month.” The task force will be coordinated by the NASAA along with state and provincial regulators. The state agencies are aiming unregistered securities offerings that promise lucrative returns without adequately informing investors of the risks, as well as suspicious cases of ICOs.
The move came on the heels of a Wall Street Journal analysis of 1,450 cryptocurrency offerings that revealed rampant scams. There were at least 271 ICOs with red flags that include plagiarized investor documents, promises of guaranteed returns, and missing or fake executive teams.
Cryptomartez reported last week that the US Securities & Exchange Commission set up a fake ICO website, HoweyCoins.com, to increase awareness of the typical warning signs of scam ICOs. The fake website represents a classic example of a fraud ICO site that touts an “all too good to be true investment opportunity.”
Posted from my blog with SteemPress : https://www.cryptomartez.com/2018/05/us-regulators-operation-crypto-sweep.html