Maryland AG joins ‘Operation Cryptosweep’

Cryptocurrency has gained plenty of attention for the opportunity it presents for ease and security. But the digital currency also brings the potential for fraud.

And now Maryland’s top law enforcement official is joining a nationwide effort to root out platforms with offers that are, in fact, too good to be true.

Attorney General Brian Frosh’s office said this week that its Maryland Securities Division is joining “Operation Cryptosweep.” It’s an initiative of the North American Securities Administrators Association (NASAA) that also aims to to raise awareness about warning signs for investors in cryptocurrency markets.

While there’s been more interest in cryptocurrency with Facebook’s plans to introduce Libra and Bitcoin’s rise, Frosh said it creates an environment for potential fraud, where platforms offer quick returns with low risk. In a single Maryland enforcement case that was brought over the last year, Frosh said a platform led investors to believe they could make returns of 150%.

“Quick returns of 150% are as rare as Bigfoot,” Frosh said in a statement. “Make sure to do independent research the product before you invest,”

In all, 35 enforcement actions have been initiated against initial coin offerings and cryptocurrency platforms in the U.S. and Canada since the beginning of 2019.

NASAA has a video designed to provide an overview at this link.