State and provincial securities regulators in the United States and Canada launched a large-scale, coordinated enforcement effort to crack down on fraudulent Initial Coin Offerings and cryptocurrency-related investment products (collectively, "products"). Beginning in April 2018, North American Securities Administrators Association ("NASAA") member regulators initiated investigations into these products as part of a synchronized campaign known as "Operation Cryptosweep." The operation spanned over 40 jurisdictions throughout the United States and Canada resulting in nearly 70 inquiries and investigations, as well as 35 pending or completed enforcement actions.
NASAA President Joseph P. Borg warned that the actions to date represent "just the tip of the iceberg" reflected in the fact that NASAA members found around 30,000 crypto-related domain name registrations. Mr. Borg advised investors to remain vigilant about fraudulent activity when using these products.
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