Update on US (Operation Cryptosweep) Crack Down on Crypto MLM Scams


Operation Crypto-Sweep was announced on Monday by the North American Securities Administrators Association (NASAA) to deal with Cryptocurrency fraud cases in the US.

operation-cryptosweep nasaa cryptocurrency scams US canada

NASAA has also revealed that there are at least 70 fraud cases involving Cryptocurrencies which they are focusing on right now.

NASAA is constituted of at least 40 jurisdictions in North America who are active members of Operation Crypto-Sweep which has initiated 70 inquires and investigations alongside 35 other pending/incomplete law enforcement action against fraudulent Cryptocurrency and ICO companies.

About half of the inquires and investigations are complete. The rest are still pending some sort of enforcement action.

PS: Mine Cryptocurrencies genuinely here.

Just in case you don’t know what NASAA does, here is a short summary of what they stand for and scope of their operations as well:

NASAA is a voluntary organization consisting of 67 member states, provincial, and territorial securities administrators in North America.  This also includes the US, District of Columbia, Puerto Rico, Virgin Islands, Canada and Mexico.

As it is right now, I strongly believe that NASAA has narrowed down on some of the most notorious MLM platforms involving Cryptocurrency fraud.

But so far, NASAA has not announced which companies they are focusing on in the 70 cases.

I have reviewed a few cases of fraudulent Cryptocurrency platforms here. But this year seems to have ushered lots of these scams into the online investment space. It has been said that nearly half of those scams are owned by US citizens who hide themselves in foreign countries while running Cryptocurrency fraud.

While the rate at which they are launching them has gone down in the past one month, many are still in the building phase and are not showing any signs of getting discouraged by these crackdowns.

NASAA President Joe Borg was recently quoted saying the following:

The actions we’ve taken to date are just the tip of the iceberg.

You’re going to see in this space a lot more collaboration and cooperation going forward.

We are only hopping that the investigative iceberg that Mr. Borg is referring to involves the infamous Bitconnect ponzi scheme.

Despite this fraud being directly responsible for the loss of millions of investors’ dollars and regulators taking some kind of action against Bitconnect, they have not publicly announced what kind of action was taken against them.

We only know that Bitconnect website no longer exists. And there could be more associates lurking out there and scamming internet users.

By the way, MLM ICO lending appears to have found a new way of marketing their scams. They now disguise themselves as ”Ethereum smart contracts’.

As of now, we can only hope that regulators will team up with authorities to refine their methods of targeting MLM Cryptocurrency scams.