Many of us have heard the term "securities fraud," but you may wonder what it refers to. Accusations of securities fraud can result in serious potential penalties and consequences, which is why it is important to understand what securities fraud is.
Securities fraud is a white collar crime. As such, it can easily be written off by someone as "something that would never happen to me." However, that is not always the case, and this type of fraud may be happening closer to home than you think.
With cryptocurrency transactions hitting an all-time high in recent months, it's inevitable that we would also see some instances of fraud. Such is the nature of financial booms and regulations, there is a check and balance that often happens between new business and government regulations. Alabama, along with several other states, have sent cease and desist letters to five cryptocurrency companies suspected of violating securities fraud laws, as part of a wider crackdown known as "Operation Crypto-Sweep."