TechFlow news, on October 25, according to The Block, the North American Securities Administrators Association (NASAA) released its 2024 Enforcement Report showing that U.S. state securities regulators focused heavily on technology and digital assets in their investigations and enforcement actions during 2023, with case numbers significantly increasing compared to 2022.
The report stated that in 2023, there were 343 new investigations involving digital assets, 144 related to staking, and 205 tied to social media fraud. Additionally, there were 214 cases concerning stocks and securities, along with 145 involving Ponzi schemes and pyramid schemes.
"Fraudsters often exploit the excitement generated by innovation and technology to deceive investors. When combined with the many ways technology and social media connect us, bad actors find abundant opportunities to defraud investors," said Leslie Van Buskirk, NASAA President and Administrator of the Securities Division at Wisconsin's Department of Financial Institutions.
The report also noted that the surge in enforcement actions related to digital assets, social media, and the internet correlates with increased complaints and referrals, particularly in scams such as "pig-butchering." State securities regulators are also paying close attention to interest- and yield-generating products, high-return investment offerings, and staking services.
