Securities regulators across the United States and Canada are getting serious about cracking down on cryptocurrency scams. A coordinated crackdown on fraudulent Initial Coin Offerings has launched operation Cryptosweep in the United States by NASAA.  Since May members of North American Securities Administrators Association in over 40 jurisdictions across North America have taken part in ‘Operation Cryptosweep’’ and so far it has resulted in 70 investigations and inquiries, as well as 35 completed or pending enforcement actions that relate to digital currencies or Initial Coin Offerings. Additional investigations on fraudulent conduct are also being investigated and this may lead to other enforcement actions. Members of North American Securities Administrators Association are also carrying out public outreach initiatives with a warning to investors of the risks that come with digital currencies and Initial Coin Offerings.

According to Texas State Securities Board’s director of enforcement, Joseph Rotunda, the virtual currency investments market is riddled with fraud. Earlier this month BTCrush, a firm based in the United Kingdom, was warned by the regulators in Texas after being found to have been in violation of the securities laws as well as providing misleading marketing information to investors.

For instance the firm uploaded videos which depicted the interior of three crypto mining facilities. According to regulators from the state the videos used in this case were picked from stock footage. Additionally action was taken against cryptocurrency firm Wind Wide Coin by the Texas regulator after pictures of celebrities such as Prince Charles and Jennifer Aniston were used to promote its digital currency.

U.S. Securities and Exchange Commission created a mock ICO website educating investors on how to spot a scam. The website HoweyCoins.com was designed to resemble a typical ICO fraud scheme with features such as a countdown clock and promises of guaranteed returns. However when the visitors to the website click to purchase the coins they are instead directed to a web page which offers investor education tips and tools. .