NASAA’s “Operation Cryptosweep” picks up 130 new cases in 2019

Administrators Association (NASAA) revealed that 130 new cryptocurrency-related cases are being actively investigated, with 35 enforcement actions, as part of Operation Cryptosweep. The regulatory initiative was launched in 2018. Back then, more than 40 state and provincial securities regulators in the United States and Canada started their coordinated action against the ICO market. While most of the investigations involved suspected securities fraud, other violations were noted as well, such as failure to register a product before offering it to investors.

NASAA president Michael Pieciak is particularly wary about Facebook’s Libra. He feels that Libra will be “creating an environment that attracts white-collar criminals, bad actors, and other promoters of illegal and fraudulent securities schemes. Investors should be mindful of the hype and be aware of the risks when considering whether to jump into cryptocurrency-related investment products.”

NASAA has also organized a task force to launch investigations into ICOs and cryptocurrency-related investment products. This task force has found more than 30,000 crypto-related domain name registrations. The NASAA chief added:

“As with any investment opportunity, be cautious when dealing with promoters who claim their offering does not have to be registered with securities regulators. Investigate independently before you invest and contact your state or provincial securities regulator with any concerns before parting with your hard-earned money.”