{"id":857,"date":"2019-01-02T15:51:32","date_gmt":"2019-01-02T20:51:32","guid":{"rendered":"https:\/\/www.amp.legal\/blog\/?p=857"},"modified":"2019-01-03T17:20:10","modified_gmt":"2019-01-03T22:20:10","slug":"agencies-target-blockchain-scams","status":"publish","type":"post","link":"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/","title":{"rendered":"Agencies Target Blockchain Scams"},"content":{"rendered":"

Cryptocurrencies suffered from a turbulent year in 2018, and hundreds of “altcoins” disappeared from the markets. Crypto survivors include major coins, such as Bitcoin and Ethereum, which are still being widely used in spite of the ups and downs of their values during 2018. A reason for the \u201cdeath<\/a>\u201d of many coins was poor management, but some Initial Coin Offerings<\/a> (ICOs) were outright scams. Ernst & Young reported<\/a>\u00a0that\u00a0\u201c10% of $3.7 billion ICO funds are either stolen or lost.\u201d<\/p>\n

Criminals\u00a0use a\u00a0variety of fraudulent activities to kill coins and scam investors. Using a \u201cpump-and-dump\u201d strategy, fake\u00a0investors manipulate coins by buying\u00a0up massive amounts of ICOs and then dump them onto an exchange. This scheme \u201ckilled” many coins when they dropped in value. Other coins died from \u201cexit\u201d scams where companies attract investments with a false platform. After collecting enough money, the companies shut down their websites and abandon their coins.<\/p>\n

SEC Shuts Down Titanium<\/h3>\n

The U.S. Securities and Exchange Commission (SEC) is cracking down on fraudulent misrepresentations in ICOs. The SEC focuses on retrieving investor funds with interest and penalties to companies that scam investors.<\/p>\n

MintDice<\/a> reported that in 2018 the SEC filed a complaint against Titanium Blockchain. The SEC charged the ICO with violating the commission\u2019s registration and anti-fraud regulations. The SEC accused the founder of falsely claiming ties to large firms like Boeing, Disney, and PayPal.<\/p>\n

Fighting Crypto Fraud<\/h3>\n

The North American Securities Administrators Association (NASAA) aims to dismantle scams by cryptocurrency firms. The NASAA launched Crypto Sweep in April 2018 that is investigating more than 50 firms.<\/p>\n

To avoid falling for blockchain investment scams<\/a>, a potential investor should carefully examine\u00a0a company before investing in a coin. Meanwhile, companies should truthfully represent their products and provide a whitepaper to explain their platform and\u00a0management to investors. Importantly, to determine the contract nature of an asset, a company should utilize the Howey Test<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Cryptocurrencies suffered from a turbulent year in 2018, and hundreds of “altcoins” disappeared from the markets. Crypto survivors include major coins, such as Bitcoin and Ethereum, which are still being widely used in spite of […]<\/p>\n","protected":false},"author":1,"featured_media":889,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[59,34,84,83,108],"yoast_head":"\nAgencies Target Blockchain Scams - Cyber Law Blog<\/title>\n<meta name=\"description\" content=\"Cyber Law Blog explores legal topics with technology including privacy law and cybersecurity.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Agencies Target Blockchain Scams - Cyber Law Blog\" \/>\n<meta property=\"og:description\" content=\"Cyber Law Blog explores legal topics with technology including privacy law and cybersecurity.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/\" \/>\n<meta property=\"og:site_name\" content=\"Cyber Law Blog\" \/>\n<meta property=\"article:published_time\" content=\"2019-01-02T20:51:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-01-03T22:20:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.amp.legal\/blog\/wp-content\/uploads\/2019\/01\/labyrinth.png\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"525\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Alice M. Porch, Esq., CIPP\/US, C|EH, Security+\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Alice M. Porch, Esq., CIPP\/US, C|EH, Security+\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/\"},\"author\":{\"name\":\"Alice M. Porch, Esq., CIPP\/US, C|EH, Security+\",\"@id\":\"https:\/\/www.amp.legal\/blog\/#\/schema\/person\/2abed582dc9fbf067a8aa30d3e21453f\"},\"headline\":\"Agencies Target Blockchain Scams\",\"datePublished\":\"2019-01-02T20:51:32+00:00\",\"dateModified\":\"2019-01-03T22:20:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/\"},\"wordCount\":317,\"publisher\":{\"@id\":\"https:\/\/www.amp.legal\/blog\/#organization\"},\"keywords\":[\"bitcoin\",\"blockchain\",\"cryptocurrency\",\"ICO\",\"scam\"],\"articleSection\":[\"Blockchain\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/\",\"url\":\"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/\",\"name\":\"Agencies Target Blockchain Scams - Cyber Law Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.amp.legal\/blog\/#website\"},\"datePublished\":\"2019-01-02T20:51:32+00:00\",\"dateModified\":\"2019-01-03T22:20:10+00:00\",\"description\":\"Cyber Law Blog explores legal topics with technology including privacy law and cybersecurity.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.amp.legal\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Agencies Target Blockchain Scams\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.amp.legal\/blog\/#website\",\"url\":\"https:\/\/www.amp.legal\/blog\/\",\"name\":\"Cyber Law Blog\",\"description\":\"Exploring technology law in cyberspace\",\"publisher\":{\"@id\":\"https:\/\/www.amp.legal\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.amp.legal\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.amp.legal\/blog\/#organization\",\"name\":\"Alice M. Porch, P.A.\",\"url\":\"https:\/\/www.amp.legal\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.amp.legal\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.amp.legal\/blog\/wp-content\/uploads\/2017\/08\/AMP-Logo.png\",\"contentUrl\":\"https:\/\/www.amp.legal\/blog\/wp-content\/uploads\/2017\/08\/AMP-Logo.png\",\"width\":1104,\"height\":1114,\"caption\":\"Alice M. Porch, P.A.\"},\"image\":{\"@id\":\"https:\/\/www.amp.legal\/blog\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.amp.legal\/blog\/#\/schema\/person\/2abed582dc9fbf067a8aa30d3e21453f\",\"name\":\"Alice M. Porch, Esq., CIPP\/US, C|EH, Security+\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.amp.legal\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b0913e4ef042f9c502b709824db43e8f?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b0913e4ef042f9c502b709824db43e8f?s=96&d=mm&r=g\",\"caption\":\"Alice M. Porch, Esq., CIPP\/US, C|EH, Security+\"},\"description\":\"Alice is a member of the Florida Bar, and she focuses on data privacy and cybersecurity compliance. She attended the Warrington College of Business at the University of Florida and earned a Bachelor of Science in Business Administration. After graduating, she earned a Juris Doctor at the Stetson University College of Law. During law school, she served as an Assistant Executive Editor for Stetson Law Review and also as a Staff Editor for Stetson Journal of Advocacy and the Law. She also served as a member of The Florida Bar Journal\/News Editorial Board from 2018-2024. She is currently a member of the Florida Bar Cybersecurity and Privacy Law Substantive Law Committee.\",\"sameAs\":[\"https:\/\/www.aliceporch.com\",\"https:\/\/www.linkedin.com\/in\/alice-m-porch\/\"],\"url\":\"https:\/\/www.amp.legal\/blog\/author\/amplegal\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Agencies Target Blockchain Scams - Cyber Law Blog","description":"Cyber Law Blog explores legal topics with technology including privacy law and cybersecurity.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/","og_locale":"en_US","og_type":"article","og_title":"Agencies Target Blockchain Scams - Cyber Law Blog","og_description":"Cyber Law Blog explores legal topics with technology including privacy law and cybersecurity.","og_url":"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/","og_site_name":"Cyber Law Blog","article_published_time":"2019-01-02T20:51:32+00:00","article_modified_time":"2019-01-03T22:20:10+00:00","og_image":[{"width":900,"height":525,"url":"https:\/\/www.amp.legal\/blog\/wp-content\/uploads\/2019\/01\/labyrinth.png","type":"image\/png"}],"author":"Alice M. Porch, Esq., CIPP\/US, C|EH, Security+","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Alice M. Porch, Esq., CIPP\/US, C|EH, Security+","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/#article","isPartOf":{"@id":"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/"},"author":{"name":"Alice M. Porch, Esq., CIPP\/US, C|EH, Security+","@id":"https:\/\/www.amp.legal\/blog\/#\/schema\/person\/2abed582dc9fbf067a8aa30d3e21453f"},"headline":"Agencies Target Blockchain Scams","datePublished":"2019-01-02T20:51:32+00:00","dateModified":"2019-01-03T22:20:10+00:00","mainEntityOfPage":{"@id":"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/"},"wordCount":317,"publisher":{"@id":"https:\/\/www.amp.legal\/blog\/#organization"},"keywords":["bitcoin","blockchain","cryptocurrency","ICO","scam"],"articleSection":["Blockchain"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/","url":"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/","name":"Agencies Target Blockchain Scams - Cyber Law Blog","isPartOf":{"@id":"https:\/\/www.amp.legal\/blog\/#website"},"datePublished":"2019-01-02T20:51:32+00:00","dateModified":"2019-01-03T22:20:10+00:00","description":"Cyber Law Blog explores legal topics with technology including privacy law and cybersecurity.","breadcrumb":{"@id":"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.amp.legal\/blog\/agencies-target-blockchain-scams\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.amp.legal\/blog\/"},{"@type":"ListItem","position":2,"name":"Agencies Target Blockchain Scams"}]},{"@type":"WebSite","@id":"https:\/\/www.amp.legal\/blog\/#website","url":"https:\/\/www.amp.legal\/blog\/","name":"Cyber Law Blog","description":"Exploring technology law in cyberspace","publisher":{"@id":"https:\/\/www.amp.legal\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.amp.legal\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.amp.legal\/blog\/#organization","name":"Alice M. Porch, P.A.","url":"https:\/\/www.amp.legal\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.amp.legal\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.amp.legal\/blog\/wp-content\/uploads\/2017\/08\/AMP-Logo.png","contentUrl":"https:\/\/www.amp.legal\/blog\/wp-content\/uploads\/2017\/08\/AMP-Logo.png","width":1104,"height":1114,"caption":"Alice M. Porch, P.A."},"image":{"@id":"https:\/\/www.amp.legal\/blog\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.amp.legal\/blog\/#\/schema\/person\/2abed582dc9fbf067a8aa30d3e21453f","name":"Alice M. Porch, Esq., CIPP\/US, C|EH, Security+","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.amp.legal\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b0913e4ef042f9c502b709824db43e8f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b0913e4ef042f9c502b709824db43e8f?s=96&d=mm&r=g","caption":"Alice M. Porch, Esq., CIPP\/US, C|EH, Security+"},"description":"Alice is a member of the Florida Bar, and she focuses on data privacy and cybersecurity compliance. She attended the Warrington College of Business at the University of Florida and earned a Bachelor of Science in Business Administration. After graduating, she earned a Juris Doctor at the Stetson University College of Law. During law school, she served as an Assistant Executive Editor for Stetson Law Review and also as a Staff Editor for Stetson Journal of Advocacy and the Law. She also served as a member of The Florida Bar Journal\/News Editorial Board from 2018-2024. She is currently a member of the Florida Bar Cybersecurity and Privacy Law Substantive Law Committee.","sameAs":["https:\/\/www.aliceporch.com","https:\/\/www.linkedin.com\/in\/alice-m-porch\/"],"url":"https:\/\/www.amp.legal\/blog\/author\/amplegal\/"}]}},"_links":{"self":[{"href":"https:\/\/www.amp.legal\/blog\/wp-json\/wp\/v2\/posts\/857"}],"collection":[{"href":"https:\/\/www.amp.legal\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.amp.legal\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.amp.legal\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.amp.legal\/blog\/wp-json\/wp\/v2\/comments?post=857"}],"version-history":[{"count":12,"href":"https:\/\/www.amp.legal\/blog\/wp-json\/wp\/v2\/posts\/857\/revisions"}],"predecessor-version":[{"id":870,"href":"https:\/\/www.amp.legal\/blog\/wp-json\/wp\/v2\/posts\/857\/revisions\/870"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.amp.legal\/blog\/wp-json\/wp\/v2\/media\/889"}],"wp:attachment":[{"href":"https:\/\/www.amp.legal\/blog\/wp-json\/wp\/v2\/media?parent=857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.amp.legal\/blog\/wp-json\/wp\/v2\/categories?post=857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.amp.legal\/blog\/wp-json\/wp\/v2\/tags?post=857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}