Scammers in the cryptocurrency field are getting governments concerned as their citizenry continue to lose millions to scams. As virtual currencies get popular, the line between a real deal and a scam is getting thinner. This has led financial regulators in the United States to team up with their Canadian friends in ‘Operation Crypto-Sweep’ in a move to blast out the bad players in an already crowded crypto field.
The unveiling of the operation, which was done today, targets Initial Coin offerings (ICOs) and other investments tagged on digital currencies. The ‘Operation Crypto-Sweep’ currently has 40 participating states.
Since its inception, the ‘Operation Crypto-Sweep’ has unearthed 70 seemingly suspicious cryptocurrency related investments and which are under investigations.
According to Joseph Rotunda, director of enforcement, Texas State Securities board,
“Although the international task force’s work is far from complete, my suspicions have already been confirmed: the market for cryptocurrency investments is saturated with fraud, and our work is only revealing the tip of the iceberg. Promoters also know that anyone can be anyone and say anything about anything on the internet. Not surprisingly, they are also manipulating photographs, media, testimonials and other online information to deceive the public into believing their claims.” As reported by CNBC.
The director, Alabama Securities Commission, Joseph Borg, indicated that the investigators in the ‘Operation Crypto-Sweep’ are taking the form of cryptocurrency investors to better nab those selling fraudulent crypto related investments.
Borg also noted that the widespread cryptocurrency-related scams are a huge stumbling block to serious cryptocurrency investor in both the U.S and Canada.
Although not all Initial Coin Offerings are fraudulent, the director at Alabama Securities Commission has advised those investing in digital currencies to be on high alert.
Do you think the ‘Operation Crypto-Sweep’ will help trace fraudulent ICOs and other investments related to digital assets?
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