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   341

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.

Crypto Investor to File Lawsuit Against AT&T

Michael Terpin believes that AT&T helped scammers to still his $24M worth crypto
16 August 2018   120

In the Los Angeles District Court, a 69-page lawsuit was filed by BitAngels founder Michael Terpin against the American telecom giant AT&T. Terpin claims that the operator assisted fraudsters in "stealing digital personal data" from the account on his smartphone, which is why he lost $ 24 million in cryptocurrency, according to an official release.

According to Terpin, for seven months, there were two hacks. Initially, an attacker got access to his phone number without providing a password or correct identification data. Later, the phone number was used to steal crypto.

AT&T’s studied indifference to protecting its customers’ privacy and financial assets is a metastasizing cancer, threatening hundreds of millions of unsuspecting AT&T’s customers. Our client had no idea when he initially signed up, nor when later he was promised the highest level of security for his account, that low-level retail employees with access to AT&T records, or people posing as them, can be bribed by criminals to override every system that AT&T advertises as unassailable.
 

Pierce O’Donnell
Lead counsel for Terpin in this complaint

Michael Terpin requires AT & T to pay him $ 224 million - $ 200 million for moral damages and $ 24 million for actual theft.