Maryland Attorney General Brian E. Frosh announced in a press release recently that his Securities Division will also be participating in “Operation Cryptosweep.” The crackdown was responsible for a few cease-and-desist letters in New Jersey recently.
The crackdown on securities-related fraud in the cryptocurrency world is growing. Maryland’s Attorney General is now joining in with his Securities Division to expand the operation. Although task force was created in 2018 by the North American Securities Administrators Association (NASAA), many state-led securities divisions have started to kick up their efforts this year.
Since the beginning of this year “35 enforcement actions against Initial Coin Offerings (ICOs) and cryptocurrency-related investment products have been completed by state and provincial securities regulators in the United States and Canada.” Maryland itself has brought charges forward against a bitcoin trading platform in its jurisdiction which promised 150% returns with passive investment.
“Quick returns of 150% are as rare as Bigfoot. Make sure to do independent research on the product before you invest. Be aware of the risks, and contact the Maryland Securities Division with any concerns before parting with your hard-earned money,” Attorney General Frosh said.
Earlier this month, two New Jersey-based ICOs were targetted by the state’s Bureau of Securities for fraud as part of ‘Operation Cryptoswee.’ “Zoptax LLC” and “Unocall” were both accused of offering registered securities.
A few days ago, the SEC also announced it froze $8M in assets from a fraudulent ICO for ‘VERI token.’
Do you believe we could see Operation Cryptosweep expand drastically by year’s end? Let us know your thoughts in the comments.
Image courtesy of Yahoo Finance.