“The persistently expanding exploitation of the crypto ecosystem by fraudsters is a significant threat to Main Street investors in the United States and Canada, and NASAA members are committed to combating this threat,” said Joseph P. Borg, NASAA President and Director of the Alabama Securities Commission.“Despite a series of public warnings from securities regulators at all levels of government, cryptocriminals need to know that state and provincial securities regulators are taking swift and effective action to protect investors from their schemes and scams.”
Investigators note crypto fraudsters utilize bogus contact information and ostentatious marketing collateral. In like manner, the crypto charlatans boast a very aggressive daily interest rate, at an unrealistic 4%. Meanwhile, they fail to report the underlying risks of crypto-investments. Finally, and most egregious, is that some of the fraudulent schemes utilize fabricated celebrity photos and endorsements.
In closing, NASAA’s approach is innovative in that it operates from the vantage point of a would be investor. The regulatory body also notes that not every crypto operation is fraudulent. Accordingly, and above all, the organization focuses on securities law compliance. Finally, and most recently, the US based Securities and Exchange Commission (SEC) has put together a website to increase ICO and crypto investment awareness as well as promote investor education.
