As stated by the North American Association of securities administrators (NASAA), during its operations under the name "Cryptosweep" was initiated over 200 investigations by the ICO and cryptocurrency investment products.
Launched in may this year operation "Cryptosweep" gave an opportunity of state and provincial regulators in the USA and Canada to carry out audits of potentially fraudulent crypto schemes. This is the largest investigation of its kind conducted by state and regional officials.
The President of NASAA and Director of securities Commission of Alabama and Joseph Borg said that during the investigation, regulators found a large number of cryptocurrency schemes, which, in all probability, violate state and Federal securities laws. For example, quite frequent violation is failure to register the products offered to investors.
"Not all of ICO and cryptoinvestment is a fraud. However, individuals and companies selling these products, it is worth remembering the legal regulation of the securities market and compliance with legal requirements. Sponsors of such products should obtain advice from professional lawyers, to ensure their legality. In addition, to worry about compliance with the law before, and not after the distribution of such products among investors."
As stated in the announcement of any project, qualified as securities, should be registered with relevant regulating bodies or to apply for benefits. This procedure is a measure of investor protection. However, NASAA still notes that even registered products can turn out to be fraudulent. Therefore, investors must conduct a thorough check ICO and cryptocurrency projects before they are funded.
Thanks to the operation "Cryptosweep", since May of this year revealed more than 30 thousand domain names related to cryptocurrencies and registered in 2017, when the cost of Bitcoin reached 20 thousand dollars.
The alleged fraudulent scheme used fake addresses and eye-catching marketing materials. They guaranteed investors returns up to 4% each day, while not informing them about potential risks. According to the results of operation "Cryptosweep" regulators took 46 enforcement actions.