US, Canadian Regulators Launch Dozens of Crypto Scam Probes

An "International crackdown" on cryptocurrency scams was launched Monday by a group of securities regulators in Canada and the United States.

Dubbed "Operation Cryptosweep," the effort was unveiled during a Monday event hosted by the North American Securities Administrators Association.

Its existence was first reported by the Washington Post and later detailed in releases from the Tennessee Department of Commerce and Insurance as well as the Texas State Securities Board.

Cryptosweep, according to statements, constitutes "Nearly 70 inquiries and investigations and 35 pending or completed enforcement actions since the beginning of the month." More investigations are said to be underway, though it's unclear when any related enforcement actions will be unveiled.

The effort gathered steam in April when a task force comprised of NASAA members was convened "To begin a coordinated series of investigations into ICOs and cryptocurrency-related investment products," the TDCI said.

A major focus was initial coin offerings or token sales, and officials reportedly identified.

Recent examples of state-based regulatory actions include one that touted false endorsements from celebrities like actress Jennifer Aniston.

"The actions announced today are just the tip of the iceberg," TDCI Assistant Commissioner Frank Borger-Gilligan said in a statement.

"The market for cryptocurrency investments is saturated with widespread fraud, and our work is only revealing the tip of the iceberg."

CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.