The Washington Post reported that “Securities regulators across the United States and Canada announced dozens of investigations Monday into potentially deceitful cryptocurrency investment products, the largest coordinated crackdown to date by state and provincial officials on bitcoin scams.” The May 21, 2018 article entitled “State regulators unveil nationwide crackdown on suspicious cryptocurrency investment schemes” included these observations from the North American Securities Administrators Association:
As many as 35 cases are pending or already completed, with some resulting in cease-and-desist letters warning the alleged schemes that their unregistered activity violates state securities law.
The enforcement actions, which have not been previously reported, take aim at efforts by groups in more than 40 jurisdictions to attract money from unsuspecting investors.
They target unregistered securities offerings that promise lucrative returns without adequately informing investors of the risks, according to state regulators.
The state agencies are also pursuing suspicious cases of initial coin offerings, or ICOs, a fundraising technique used by both legitimate and illegitimate cryptocurrency projects in ways that resemble initial public offerings of stock.
When something sounds too good to be true, it probably isn’t something you should trust!
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