NewsRegionAnne Arundel County

Actions

Maryland cracking down on fake cryptocurrency deals

Posted: 12:42 PM, Aug 14, 2019
Updated: 2019-08-14 12:44:28-04
Bitcoin falls below $10,000

ANNAPOLIS, Md. — Maryland Attorney General Brian E. Frosh announced that his Securities Division will conduct a nationwide "Operation Cryptosweep" aimed at taking down fake cryptocurrency business deals.

The Maryland Securities Division has recently conducted an enforcement action against a Bitcoin trading company that fooled investors into believing they could earn as much as 150% through passive investments. They also took action against a Maryland resident who sold investments in the trading platform.

“Cryptocurrency investments are risky. Investors should be extra cautious when dealing with promoters who claim their offering does not have to be registered with securities regulators,” said Attorney General Frosh. “Quick returns of 150% are as rare as Bigfoot. Make sure to do independent research the product before you invest. Be aware of the risks, and contact the Maryland Securities Division with any concerns before parting with your hard-earned money.”

The Securities Division is working to raise investor awareness after recent headlines publicized cryptocurrency products created by illegal and fraudulent security schemes. They say investors and con artists have turned to cryptocurrency investments looking for quick profits.

Since the beginning of the year, 35 enforcement actions against Initial Coin Offerings (ICOs) and cryptocurrency-related investment products have been completed by state and provincial securities regulators in the United States and Canada.

To learn more on how investors can protect themselves from fraudulent cryptocurrency deals, click here.