Operation Cryptosweep

In April 2018, NASAA organized a task force of its member state and provincial securities regulators to begin a coordinated series of investigations into ICOs and cryptocurrency-related investment products. Regulators identified many cryptocurrency-related products and as part of its work, the task force identified hundreds of ICOs in the final stages of preparation before being launched to the public. These pending ICOs were advertised and listed on ICO aggregation sites to attract investor interest. Many have been examined and some were determined to warrant further investigation. A number of these investigations are ongoing and others resulted in enforcement actions.

NASAA members from more than 40 jurisdictions throughout North America participated in “Operation Cryptosweep,” which to date has resulted in more than 200 inquiries and investigations and nearly 50 enforcement actions related to ICOs or cryptocurrencies since the beginning of May. NASAA members are conducting additional investigations that may result in additional enforcement actions.

Operation Cryptosweep 

RESPONDENT AGENCY ACTION NOTES
Adosia LLC North Carolina Secretary of State – Securities Division Consent Order Unregistered securities offering by unregistered dealers
Antivolatility Coin,
ZZZ Coin,
Power Invest Group,
Frank Bernier, William Bolduc
Autorité des marchés financiers (AMF) – QUEBEC (CANADA) Cease & Desist Order Offer and sale of unregistered securities; registration violations; offer and sale of derivatives; misleading and deceptive statements; offer of investments in the cryptocurrency mining pools; offer and sale of investment tied to the cryptocurrency ecosystem through multi-level marketing schemes.
Baltic Fund Office of Missouri Secretary of State Securities Division Order to Cease & Desist and Order to Show Cause Offering and selling unregistered, non-exempt securities; making an untrue statement, omitting to state material facts or engaging in an act, practice, or course of business that would operate as a fraud or deceit upon another person in connection with the offer or sale of securities
BC Holdings and Investments LLC Texas State Securities Board Cease & Desist Order Registration violations; fraud and misleading/deceptive statements
Bionic Indiana Office of the Secretary of State, Securities Division Cease & Desist Order Registration violations
Bionic Coin Colorado Division of Securities Cease & Desist Order Solicitation of unregistered securities
Bitcoin Trading & Cloud Mining Limited
AKA BTCRUSH, Jaylon Cross, Bruce
Rodgerson, Robin Lozinski and Thomas A. Johnson
Texas State Securities Board Emergency Cease & Desist Order Registration violations; Fraud in connection with the offer of investments in the cloud-based cryptocurrency mining program; misleading and deceptive statements
Blue Vase Mining Massachusetts Securities Division Consent Order Selling unregistered or non-exempt securities
Broad Investments, LLC, and Guoyong Liu Colorado Division of Securities Cease & Desist Order and Order to Show Cause Sale of unregistered securities
Browsers Lab, LLC Maryland Office of the Attorney General,  Securities Division Summary Order to Cease and Desist and Order to Show Cause Offer and Sale of Unregistered Securities; Acting as an Unregistered Broker-Dealer or Agent; Employment of Unregistered Agent for Sale of Securities; Material Misrepresentation or Omission
Bullcoin Foundation a/k/a/ Bullcoin Gold New Jersey Bureau of Securities, Office of the New Jersey Attorney General Summary Cease & Desist Order Registration Violations; Omissions of Material Facts in Connection With The Offer Of Securities
Chain Group Escrow Service Alabama Securities Commission Cease & Desist Order Offer and Sale of Unregistered Securities; Omission of Material Facts
Cryptocashback  c/o Kapsus Technologies Ltd. British Columbia Securities Commission  Cease & Desist Letter Potentially offering or promoting securities without registration
DasCoin British Columbia Securities Commission Cease & Desist Letter Potentially offering or promoting securities without registration
Digitalticks British Columbia Securities Commission Cease & Desist Letter Potentially offering or promoting securities without registration
Disciplina* British Columbia Securities Commission Cease & Desist Letter Potentially offering or promoting securities without registration
*(RESOLVED per regulator)
Doctailor British Columbia Securities Commission Cease & Desist Letter Potentially offering or promoting securities without registration
Extrabit Ltd; Mack Deacon Alabama Securities Commission Cease & Desist Order Offer and Sale of Unregistered Securities; Omission of Material Facts
Forex EA & Bitcoin Investment LLC
AKA My Forex EA & Bitcoin Investment LLC
AKA My Forex EA, James Butcher and Richard Dunn
 Texas State Securities Board Emergency Cease & Desist Order Registration violations; Fraud in connection with the offer of investments in the forex and cryptocurrency mining program; misleading and deceptive statements
Global Pay Net (aka GLPN Coin, CPN Token) Colorado Securities Commission Cease & Desist Order Solicitation of Unregistered Securities
Hashkon Inc. Alabama Securities Commission Cease & Desist Order Offer and Sale of Unregistered Securities; Omission of Material Facts
Krios British Columbia Securities Commission  Cease & Desist Letter Potentially offering or promoting securities without registration
LevelNet Vermont Department of Financial Regulation Cease & Desist Order Registration Violations; Deceptive Advertising
Leverage Alabama Securities Commission Cease & Desist Order Offer and Sale of Unregistered Securities; Omission of Material Facts
Linda Healthcare Corporation Co. and Arturo Devesa Colorado Division of Securities Cease & Desist Order and Order to Show Cause Sale of Unregistered Securities
Mintage Mining Texas State Securities Board Cease & Desist Order Registration Violations; Fraud and Misleading/Deceptive Statements
NUI Social Texas State Securities Board Cease & Desist Order Registration Violations; Fraud and Misleading/Deceptive Statements
Platinum Coin; Roman Dinkevich; Sergei Cherepanov,
Vladimir Gorshkov, Andrey Malevanchuk, Roman Terekhin
Alabama Securities Commission Cease & Desist Order Offer and Sale of Unregistered Securities; Omission of Material Facts
Plexcoin Autorité des marchés financiers (AMF) – QUEBEC (CANADA) Cease & Desist Order
Pooltrade; Harold Theron Alabama Securities Commission Cease & Desist Order Offer and Sale of Unregistered Securities; Omission of Material Facts
Power Mining Pool North Carolina Secretary of State – Securities Division Permanent Cease and Desist Order Unregistered securities offering
Roaring Investments Pennsylvania Department of Banking and Securities Cease & Desist Order Registration Violations
ShipChain, Inc.* Office of the South Carolina Attorney General, Securities Division Administrative Cease & Desist Order *ORDER WITHDRAWN
Sigil Platform* British Columbia Securities Commission Cease & Desist Letter Potentially offering or promoting securities without registration
*(RESOLVED per regulator)
Social Membership Network Holding LLC Texas State Securities Board Cease & Desist Order Registration Violations; Fraud and Misleading/Deceptive Statements
Springcryptoinvest a/k/a Springcryptoinvest.com Ltd. New Jersey Bureau of Securities, Office of the New Jersey Attorney General Summary Cease & Desist Order Registration Violations; Omissions of Material Facts in Connection With The Offer Of Securities
Sybrelabs Ltd. (aka CryptoARB) Colorado Securities Commision Cease & Desist Order Solicitation of Unregistered Securities
Symatri LLC Texas State Securities Board Cease & Desist Order Registration Violations; Fraud and Misleading/Deceptive Statements
Taklimakan Network British Columbia Securities Commission Cease & Desist Letter Potentially offering or promoting securities without registration
ThinkCoin* British Columbia Securities Commission Cease & Desist Letter Potentially offering or promoting securities without registration
*(RESOLVED per regulator)
Trident d/b/a Trident Crypto Index Fund New Jersey Bureau of Securities, Office of the New Jersey Attorney General Summary Cease & Desist Order Registration violations; Omissions of Material Facts in Connection With The Offer Of Securities
Tripbit* British Columbia Securities Commission Cease & Desist Letter Potentially offering or promoting securities without registration
*(RESOLVED per regulator)
Ubcoin* British Columbia Securities Commission Cease & Desist Letter Potentially offering or promoting securities without registration
*(RESOLVED per regulator)
USI-Tech Ohio Department of Commerce – Division of Securities Administrative Cease & Desist (Notice Order) Registration violations; Omissions of Material Facts in Connection With The Offer Of Securities; False Representation of a Material or Relevant Fact
Wind Wide Coin Inc. AKA WWC Inc., Charles Roman, Fred Andrew and John Anny Texas State Securities Board Emergency Cease & Desist Order Registration violations; Fraud in connection with the offer of investments in the cryptocurrency mining program; misleading and deceptive statements
Zanfau Ltd. Alabama Securities Commission Cease & Desist Order Offer and Sale of Unregistered Securities; Omission of Material Facts
ADDITIONAL ACTIVITIES AGENCY ACTIVITY
Binance Limited The Investor Protection Bureau of the Office of the New York State Attorney General Information Demand Letter
BIOK Nova Scotia Securities Commission  Investor Alert
bitFlyer USA, Inc. The Investor Protection Bureau of the Office of the New York State Attorney General Information Demand Letter
Bitstamp USA Inc. The Investor Protection Bureau of the Office of the New York State Attorney General Information Demand Letter
Bittrex, Inc. The Investor Protection Bureau of the Office of the New York State Attorney General Information Demand Letter
Circle Internet Financial Limited
(Poloniex LLC)
The Investor Protection Bureau of the Office of the New York State Attorney General Information Demand Letter
Coinbase, Inc. The Investor Protection Bureau of the Office of the New York State Attorney General Information Demand Letter
Elite Way Developments LLP The Investor Protection Bureau of the Office of the New York State Attorney General Information Demand Letter
Gate Technology Incorporated The Investor Protection Bureau of the Office of the New York State Attorney General Information Demand Letter
Gemini Trust Company The Investor Protection Bureau of the Office of the New York State Attorney General Information Demand Letter
Huobi Global Limited The Investor Protection Bureau of the Office of the New York State Attorney General Information Demand Letter
iFinex Inc. (Bitfinex)  The Investor Protection Bureau of the Office of the New York State Attorney General  Information Demand Letter
itBit Trust Company  The Investor Protection Bureau of the Office of the New York State Attorney General  Information Demand Letter
Orca Alliance Nova Scotia Securities Commission  Investor Alert
Payward, Inc. (Kraken) The Investor Protection Bureau of the Office of the New York State Attorney General Information Demand Letter

 

 

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