The US Securities and Exchange Commission (SEC) is continuing its enforcement spree against fraudulent websites that are offering exorbitant returns in investments. Hundreds of these sites have been targeted by the regulator in an effort to crack down on bad actors.

The returns promised by these sites promised returns of up to 61.9% within 24 hours, a rate the SEC called “unsustainable”. One of the websites taken down by the SEC was GA-Investors.org (GAI), which promised returns ranging from 2% to 4.5%.

As part of their investment, users were directed to purchase crypto assets from a separate trading platform and transfer them to GAI by sending them to the GAI wallet address listed on the private account page.

It is hoped that these actions by the SEC will help clean up the growing cryptocurrency market by removing bad actors and letting the good ones continue to innovate.

The SEC is not stopping there, however. In March the regulator sent a Wells notice to Coinbase for violations of securities regulations. Coinbase took legal action in an attempt to clarify the regulations the SEC was trying to enforce. The US Chamber of Commerce, the Crypto Council for Innovation, and other crypto industry players have backed Coinbase in a series of amicus briefs.

The SEC’s enforcement efforts have been welcomed as a way of cleaning up potentially damaging fraudulent schemes and allowing more reputable players to continue operating. In addition, the regulator has been encouraged to focus on understanding the cryptocurrency market rather than relying on a purely enforcement-based approach.



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