‘Operation Crypto-Sweep’ Initiated By Securities Regulators Against ICOs – Reportbr>
United States and Canadian securities regulators have launched an investigation into at least 70 companies engaging in initial coin offerings (ICO), according to a Washington Post report.
The news came from members of the North American Securities Administrators Association, who said that nore than 40 state and provincial watchdogs are participating in “Operation Crypto-Sweep.” While ICOs aren’t the sole focus, they are the largest part of the investigation.
“Although the international task force’s work is far from complete, my suspicions have already been confirmed: The market for cryptocurrency investments is saturated with fraud, and our work is only revealing the tip of the iceberg,” said Joseph Rotunda, director of enforcement at the Texas State Securities Board, one of the participants. Texas has been particularly active against what they believe are non-registered securities purveyors.
The investigations by the trade association are in line with the crackdown on alleged fraud by the US Securities and Exchange Commission and the Commodity Futures Trading Commission, both having authority over securities.