Updated: Operation Cryptosweep Sends John McAfee-Advised CryptoSecure Cease and Desist
Update: According to a statement that CryptoSecure made to Coinsquare News, the team heavily contests the assertions of the NASAA press release.
“CryptoSecure has not been served with any Cease and Desist Notice from New Brunswick Financial and Consumer Services Commission,” the team stated. “We also have serious objection to the NASAA inference, through their first two paragraphs of their release, that CryptoSecure is in any way fraudulent.”
Further, CryptoSecure said correspondence it received from the New Brunswick Financial and Consumer Services Commission is specific to the province. CryptoSecure denies that it is marketing or selling securities in New Brunswick, and called the action of these regulatory bodies “unsupported and irresponsible [in] their actions leading to the CryptoSecure inclusion in the NASAA release.”
Lastly, CryptoSecure said John McAfee previously departed from his role and association with the platform. This article has been updated to reflect that McAfee is no longer a senior security adviser for CryptoSecure.
(May 22rd, 2018) In a collaborative effort between the U.S. and Canada, the North American Securities Administrators Association (NASAA) is cracking down on suspected cryptocurrency scams. As part of a wave of new regulatory action, a cease and desist letter was sent to CryptoSecure, a company of which John McAfee is a former advisor.
Formerly John McAfee-advised firm hit with regulatory action
Launched in 2018, CryptoSecure is a platform that aims to provide cybersecurity protection on the blockchain. The platform claims to keep users secure and anonymous, boasting a ‘hackproof’ security solution.
In March, the firm enlisted John McAfee, founder of McAfee Associates and prominent digital currency influencer, to serve as its senior security adviser. At the time, McAfee called the project a way to “end this crisis,” referring to the digital currency breaches that occurred over the past few years.
The Crypto Secure ICO
(https://t.co/EIUOvp6TjH) overcomes the largest threat facing the cryptoverse – stolen coins. CryptoSecure’s SafeWindow will make you, your IP address and your geolocation invisible to everyone. Your cryptocurrency and privacy is secured. pic.twitter.com/8xzY9uNZrA
— John McAfee (@officialmcafee) March 3, 2018
McAfee’s appointment to the project correlated with CryptoSecure launching its Initial Coin Offering (ICO), which is still ongoing. To-date, the website claims to have raised over 2,007 ETH (valued at over $1.7 million CAD at press time) from 351 contributors.
The New Brunswick Financial and Consumer Services Commission filed the Cease & Desist letter, which is backed by the NASAA. However, at the current point in time it is unclear how this regulatory action will affect CryptoSecure’s global operations.
Canada and U.S. vow to further OperationCryptosweep
While announced to the public yesterday, OperationCryptosweep launched at the beginning of May 2018. The initiative brings together NASAA members from more than 40 jurisdictions throughout North America.
Reportedly, the initiative resulted in nearly 70 inquiries and investigations so far, of which 35 pending or completed actions have been taken. NASAA members are conducting additional investigations into potentially fraudulent conduct, meaning additional enforcement action could be on the way.
“The actions we’ve taken to date are just the tip of the iceberg,” said Joe Borg, NASAA president and director of the Alabama Securities Commission.
The State Securities Board and NASAA member agencies will continue investigating “cryptocurrency investment schemes” in the coming weeks, including “the sometimes murky business of Initial Coin Offerings.”
In the meantime, investors are advised to proceed with caution when interacting with the digital currency landscape. The industry boasts many honest actors and innovators, but it is important for investors to listen to multiple sources, investor alerts, and to primarily engage with trusted institutions.
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