US Investigations Target Over 200 ICO Projects

US Investigations Target Over 200 ICO Projects
ICO News

ICO projects 2018 has been the year of cryptocurrency scams. From crypto jacking, exchange hacks and sim swapping, hackers seem to be coming with new ways to steal cryptocurrencies.

In a recent turn of events, the US government has launched an investigation against ICO projects as a way to crack down on fraudulent ICO projects.

The number of ICO projects in 2017-18 has broken all records. Amidst this explosion of new cryptocurrencies, companies have to also deal with the ongoing investigations from the US government.

The North American Securities Administrators Association (NASAA) pubished a report on August 28 announcing the launch a project called “Operation Cryptosweep”. This Operation has resulted in investigations into over 200 ICO and investment products in the cryptocurrency industry.

Operation Cryptosweep began in May 2018 to curb the fradulant activities that are conducted by various ICOs across the United States and Canada. NASAA has created a dedicated task force to crack down on crypto crimes.

Joseph P. Borg, NASAA President and The Director of Alabama Securities Commission said that the team has found multiple crypto projects who are violating state and local regulations. Most of these stem from failing to register their business and project as per the existing crypto laws and regulations.

Bord said “Sponsors of. these products should seek the advice of knowledgeable legal counsel to ensure they do not run afoul of the law. Furthermore, a strong culture of compliance should be in place before, not after, these products are marketed to investors.”

Operation Cryptosweep is also investigating more than 30,000 domain names that are related to the cryptocurrency industry. Majority of these were registered in 2017 when Bitcoin reached a peak value of $20,000.

The Result

Out of the 200 investigations performed, the officials have issued notices to 46 projects so far. This news serves as a reminder to all of us about the severity of the situation. We should always be careful when putting down money on a new project. A well-informed decision can save you in the long run.

Although the crackdown seems to be working, they are yet to provide protection to potential investors. NASAA has adviced investors to carry out in-depth research before deciding to put money in any crypto-related project.

No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

VKontake Launches Cryptocurrency Of Its Own - VK Coin
ICO News
Russian Social Media Giant Launches Cryptocurrency – April Fool Prank?

VKontake (a.k.a VK), the Russian Facebook rival, launched its own cryptocurrency. There are numerous flashes and reports about …

ICO News
JPMorgan Hiring For More Blockchain Jobs Than The Rest

It has been a wider known truther that the largest bank in America seeks to rush towards a …

ICO
Emaar Group Plans to Start an ICO

The Emaar group, the real estate firm behind the world’s tallest building has planned to develop its own …

Recent Blogs










Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!