Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: 9158 Exchange on May 22, 2018, 04:38:07 AM
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An "international crackdown" on cryptocurrency scams was launched Monday by a group of securities regulators in Canada and the United States.
Dubbed "Operation Cryptosweep," the effort was unveiled during a Monday event hosted by the North American Securities Administrators Association (NASAA). Its existence was first reported by the Washington Post and later detailed in releases from the Tennessee Department of Commerce and Insurance (TDCI) as well as the Texas State Securities Board (TSSB).
Cryptosweep, according to statements, constitutes "nearly 70 inquiries and investigations and 35 pending or completed enforcement actions since the beginning of the month." More investigations are said to be underway, though it's unclear when any related enforcement actions will be unveiled.
The effort gathered steam in April when a task force comprised of NASAA members was convened "to begin a coordinated series of investigations into ICOs and cryptocurrency-related investment products," the TDCI said. Initial coin offerings (ICOs) or token sales were a major focus and officials reportedly identified hundreds for further inquiry.
A representative for the NASAA did not immediately respond to a request for comment, but others involved in the operation painted a picture of a wide-ranging effort to stamp out fraud. Recent examples of state-based regulatory actions include one that touted false endorsements from celebrities like actress Jennifer Aniston.
"The actions announced today are just the tip of the iceberg," TDCI Assistant Commissioner Frank Borger-Gilligan said in a statement.
Joseph Rotunda, the TSSB's Enforcement Division director, echoed that sentiment, stating:
"The market for cryptocurrency investments is saturated with widespread fraud, and our work is only revealing the tip of the iceberg."
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Is there a way to stop such kind of scam? Because if nothing I think better the government would ban crypto in this place.
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Governments should not be banning crypto, but if they crack down on scam ICOs it will benefit us investors as the scammers will think twice about releasing a dead project
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Unfortunately, fraud cases have shaken confidence in cryptos, so they need to be tackled very seriously. In addition, those involved in these cases should be given deterrent punishments.
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Unfortunately, fraud cases have shaken confidence in cryptos, so they need to be tackled very seriously. In addition, those involved in these cases should be given deterrent punishments.
I definitely agree.. as if it wasn't already bad enough with bitcoin only purchases drugs, to hnow you have billion dollar scams like bitconnect.. and things that seem good on the surface but are a quick exit scam.. its hard to really know for sure with some of these even as someone whos done this a long time.