By On August 14, 2019, Brian E Frosh, the Maryland Attorney General announced through a press release that his office was taking enforcement action in support of a global crackdown on corrupt Initial Coin Offerings (ICOs) and investment products related to cryptocurrency, termed “Operation Cryptosweep”.
The Operation Enforced
The Securities Division offered a summary order as part of “Operation Cryptosweep” to cease and desist. The division also gave an order to show cause against BrowserLab, LLC which is based in Windsor Mill. Utilizing its website to initiate its token, the BrowserLab pitches to investors that the tokens will come-up with a new market and that the raised funds will be utilized for covering operating costs. For founders and loyal contributors, there will be discounted tokens to buy before the launch of the official ICO. Before the order becomes final, the company has the right to a hearing.
“Fraudulent undertakings involving ICOs and cryptocurrency-associated investment products is a big threat to investors in Maryland. The Securities Division has pledged to swiftly and successfully protect investors from fraudulent activity involving these products.” Attorney general has said.
Attorney General’s Securities Division is part of the North American Securities Administrators Association (NASAA). In April this year, they organized a task force of its member states and provincial securities regulators to start a synchronized number of investigations into ICOs and cryptocurrency-related investment products. Maryland has combined efforts with more than 40 other states and provincial securities coordinators to begin a synchronized system in the United States and Canada to bring in “Operation Cryptosweep.” These are part of actions in addition to a dozen enforcement lawsuits previously undertaken.
Just a Tip of the Iceberg, Melanie says
Securities Commissioner, Melanie Lubin, noted that “The actions announced today are just the tip of the iceberg, considering that NASAA’s task force also found 30,000 crypto-associated domain name listing. These large numbers appeared in both 2017 and 2018.”
An essential part of “Operation Cryptosweep” is raising awareness to the public on the risks involved in ICOs and cryptocurrency-associated investment products.
“Not every ICO or cryptocurrency-related investment is fraudulent, but we urge investors to approach any initial coin offering or cryptocurrency-related investment product with extreme caution,” attorney General Frosh just said.
New Video to Help Raise More Awareness Released
The Maryland Securities Division has just proclaimed a new video to help raise awareness in the “Get in the Know” series produced by NASAA. Through this video, NASAA seeks to examine typical crypto investment schemes and give instructions on being on guard against fraud. The video also highlights some of the most significant concerns that investors may encounter and should consider before delving into the crypto-space.
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