Tech News, Magazine & Review WordPress Theme 2017
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Scammers Face ‘Operation Cryptosweep’ in the Battle Against Cryptocurrency Fraud

by Daily Hodl Staff
May 21, 2018
in Scams, Schemes and Hacks

The US and Canada have announced the launch of “Operation Cryptosweep” to combat crypto investment schemes. In the largest joint effort to date, securities regulators across both countries are cracking down on a slew of investment products from crypto and blockchain startups. Investigations into several dozen “Bitcoin scams” were announced on Monday.

According to state regulators, unscrupulous actors are inventing crypto schemes to defraud investors who are hoping for big gains on initial public offerings (ICO) and other cryptocurrency investments that promise regular payouts, easy money and “dividends”. These products often resemble Ponzi schemes and pyramids.

Joseph Borg, president of NASAA and the director of the Alabama Securities Commission says, “We’re putting ourselves in the shoes of investors. We’re seeing what’s being promoted to investors. And then we’re taking the next step and then we’re finding out whether they’re complying with securities laws.”

In one example, U.K.-based Bitcoin Trading & Cloud Mining, aka BTCrush, was allegedly violating state laws when it claimed to operate three bitcoin mining farms. It used promotional videos to solicit Texas residents. Regulators discovered, however, that the videos were edited from publicly available stock footage. BTCrush advertised its investment as “a cloud-based cryptocurrency mining program” that has been paying 4.1% interest daily on a lifetime contract since going live on March 8, 2018. It also failed to register its offering as a security and promised commissions to Texas residents who would act as sales agents to recruit more investors.

The company responded to a cease-and-desist order, stating that it “has complied and will continue to comply.”

“Not every ICO or cryptocurrency-related investment is fraudulent, but we urge investors to approach any initial coin offering or cryptocurrency-related investment product with extreme caution,” Borg said.

Trey Ditto, CEO of Ditto PR, a crypto public relations firm that represents Monero and Coinlist, among others, says, “What I don’t like is to see these crypto and blockchain startups saddled in legal fees and scared to talk more publicly about their projects because of operations like this. There’s a difference between rounding up the bad guys and scaring the good guys.”

To date, Operation Cryptosweep has resulted in nearly 70 inquiries and investigations, and 35 pending or completed enforcement actions related to ICOs or cryptocurrencies since the beginning of May 2018. Regulators expect that this number represents only the tip of the iceberg.

The Securities and Exchange Commission is taking a novel approach in its efforts to educate the public about crypto scams. It recently launched a website for the “HowieCoin”, a fake cryptocurrency, loading the solicitation with enough crypto catchphrases and luxurious beach imagery to lure investors.

“The companies that are going through strict compliance, talking to the SEC, and doing commendable due diligence aren’t too worried about Operation Cryptosweep,” says Ditto. “I’d argue quite the opposite. This is separating the good from the bad, because while there are a lot of scams, there are a lot of good companies, creating amazing products. What the community needs is more defined language from the SEC. Yes, the SEC and CFTC have made comments around securities versus utility tokens, but really good projects are completely frozen or worried about talking publicly until the SEC sends out a more formalized mandate.”

Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • DeFiChain Community Brings Attractive Rewards for DFI ERC-20 Pairs on Uniswap
    August 8, 2022
  • Bware Labs Announces the Blast Incentivized Testnet, Code-Named Houston
    August 8, 2022
  • Aurigami Collects $12 Million War Chest To Grow Aurora-Based Lending Protocol
    August 2, 2022
  • Impel Adds Bitcoin to ISO 20022 Financial Messaging on XDC Network
    August 2, 2022
  • Serenity Shield and Digital Insights Announce Strategic Partnership
    August 2, 2022
  • Crypto Platform Phemex Becomes Partner of Université Paris Dauphine – PSL To Support Research on DeFi and Cryptocurrency
    August 1, 2022
  • Open Loot Announces Partnership With Hit Factor’s War Park
    August 1, 2022
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$24,193.48
$24,193.48
5.72%
Ethereum
$1,874.12
$1,874.12
11.03%
Cardano
$0.543953
$0.543953
6.23%
XRP
$0.384618
$0.384618
4.8%
Dogecoin
$0.07195
$0.07195
5.24%

Spotlight

  • New York State Fines Crypto Wing of Robinhood $30,000,000 for Allegedly Violating Consumer Protection Laws
    August 4, 2022
  • Top Analyst Says Ethereum (ETH) About To Rip, Calls One Exchange Token an ‘Actual Tank’
    August 7, 2022
  • $100,000 Bitcoin Price Is Inevitable, According to Bloomberg Strategist Mike McGlone – Here’s Why
    August 10, 2022
  • MicroStrategy’s $2,983,077,000 Bitcoin Trove Not for Sale After CEO Michael Saylor Steps Down
    August 3, 2022
Finance Magnates London Summit Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2022 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2022 The Daily Hodl