Operation Cryptosweep was launched back in May 2018 with an aim to protect the investors and keep them from falling prey to fraudulent ICO schemes or other crypto-related investment products. This international task force aims to focus on the securities infringement in the crypto business which was established by the North American Securities Administrators Association (NASAA), a body formed by a joint regulatory force of the U.S., Canada, Puerto Rico, the U.S. Virgin Islands and Mexico.

In an official public statement on Tuesday, August 28, NASAA reported that Operation Cryptosweep has now "more than 200 active investigations" done by the provincial-level and state offices in the U.S. and, Canada itself. In a recent couple of months, the Operation Cryptosweep has started 47 diverse authorization activities while uncovering violations relating to securities fraud to startups deceiving the investors about their products prior to the launch.

Operation Cryptosweep has likewise gotten support and appreciation from Jay Clayton, the U.S. Securities and Exchange Commission (SEC) Chairman. The press release quoted Joseph P. Borg, NASAA President, and Alabama Securities Commission Director, saying:

“State and provincial securities regulators are committing significant regulatory resources to protect investors from financial harm involving fraudulent ICOs and cryptocurrency-related investment products and also are raising awareness among industry participants of their regulatory responsibilities.”

He additionally included:

“While not every ICO or cryptocurrency-related investment is a fraud, it is important for individuals and firms selling these products to be mindful that they are not doing so in a vacuum; state and provincial laws or regulations may apply, especially securities laws. Sponsors of these products should seek the advice of knowledgeable legal counsel to ensure they do not run afoul of the law. Furthermore, a strong culture of compliance should be in place before, not after, these products are marketed to investors.”

Moreover, Borg also requested to do exhaustive groud homework on their part while purchasing new digital tokens in the market. He also asked the investors to remain alert in ventures wherein promoters "claim their ICO offering is exempt from securities registration but do not ask about your income, net worth or level of investing sophistication.”

Texas' state security board has been the most effective in finding and stopping the fraudulent schemes "in which companies claimed to have raised billions of dollars from investors." Joseph Rotunda, director of enforcement at the Texas State Securities Board, said that the office has uncovered "staggering" amount of illegal activities in the cryptocurrency space by pulling-in famous personalities as a part of their marketing stunt. Rotunda concluded: