US, Canadian Watchdogs to Start Anti Crypto Scam Action

"Operation Cryptosweep" constitutes "nearly 70 inquiries and investigations and 35 pending or completed enforcement actions"
22 May 2018   675

A group of financial regulators from the US and Canada announced an "international crackdown" to combat fraudsters in the field of cryptocurrencies. This is reported by Washington Post.

The initiative, sponsored by the North American Securities Administrators Association (NASAA), received the name "Operation Cryptosweep." It consists of "nearly 70 inquiries and investigations and 35 pending or completed enforcement actions since the beginning of the month." In addition, even more investigations are on the way, but it is not clear now when it will be told about the related enforcement measures.

The initiative began to gain momentum in April, when a working group consisting of NASAA members was established to "to begin a coordinated series of investigations into ICOs and cryptocurrency-related investment products". The regulators will be focused on the ICO and the sale of tokens.

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

Joseph Rotunda

Director, TSSB's Enforcement Division

NASAA has not yet commented on the situation, but other agencies involved in the operation, reported that the initiative to combat fraudsters has a large-scale nature. Examples of state-based regulatory actions include one that touted false endorsements from celebrities like actress Jennifer Aniston.

Authorities to Study Bankrupt QuadrigaCX

Canada Revenue Agency sent a request for access to the tax info from Oct. 1 2015 to Sep. 30, 2018
18 September 2019   43

The Canadian Revenue Agency (CRA) intends to examine corporate declarations that ceased to exist as a result of the bankruptcy of the QuadrigaCX bitcoin exchange, The Globe and Mail reports.

CRA sent a request for access to the tax reporting of the exchange from October 1, 2015 to September 30, 2018, that is, on the date when QuadrigaCX tentatively began problems with the withdrawal of funds.

The E&Y auditor, acting as the trustee of the exchange, intends to discuss the tax request and obtain permission from the court to disclose information.

At the same time, the company noted that one way or another they are forced to comply with the CRA requirements, although this will take a lot of time and delay the payment of compensation to victims.

At the beginning of the year it became known that QuadrigaCX lost access to user funds by $ 190 million, and somewhat later, Indian authorities confirmed the death of the founder of the exchange, Gerald Cotten.