US and Canadian state and provincial securities regulators have opened probes into potentially fraudulent crypto investment programs in what has been dubbed “Operation Cryptosweep”, according to a press release May 21. The latest crackdown on suspicious crypto investment products is reportedly the largest such coordinated investigation by state and provincial officials.
Regulators from across 40 jurisdictions coordinated by the North American Securities Administrators Association (NASAA) have initiated up to 70 investigations, with more to come in the following weeks. Securities regulators have reportedly warned as many as 35 companies about violations of state securities laws with some cases resulting in cease-and-desist actions.
NASAA, which released a warning for Main Street investors regarding the risks associated with crypto and ICOs early this year, said the probe is focusing on suspicious cases of initial coin offerings (ICOs).