Crack Down On ICOs Continues, U.S. Marshals Prepare To Auction Seized Bitcoin

In an Oct. 11 press release, the office of North Dakota Securities Commissioner Karen Tyler announced the issuance of cease-and-desist orders against three companies "promoting unregistered and potentially fraudulent securities in North Dakota in the form of Initial Coin Offerings (ICOs)." The press release reported that none of the companies has registered to sell securities in North Dakota, and the Commissioner alleges that each of the three entities made false or unsubstantiated claims about the nature, value, or upside potential of their tokens. The Commissioner's effort is said to be part of Operation Cryptosweep, a coordinated multijurisdiction investigation and enforcement effort involving 40 U.S. and Canadian securities regulators. In a related development, recent reports indicate that two global credit card companies are moving to classify purchases related to cryptocurrencies and ICOs in "high risk" payment categories.