On July 9, 2025, the Alabama Securities Commission (ASC) announced a major crackdown on cryptocurrency scams operating within the state. The ASC revealed that it had identified several fraudulent investment schemes promising high returns through the trading of digital assets, specifically targeting unsuspecting investors.Commissioner John Thompson issued a warning to investors, urging them to exercise caution when considering investments in the volatile cryptocurrency market. He emphasized the importance of conducting thorough research and due diligence before committing any funds to such investments.One of the fraudulent schemes uncovered by the ASC involved a company based in Alabama that was soliciting investments in a cryptocurrency token purported to be the next bitcoin. The company promised investors guaranteed returns of 10% per month, with no risk of loss. However, upon further investigation, the ASC found that the company had no legitimate business operations and was simply operating a Ponzi scheme.In response to these findings, the ASC has taken swift action to shut down the fraudulent operation and has initiated legal proceedings against the individuals responsible for orchestrating the scam. The commission is also working closely with law enforcement agencies to investigate similar schemes operating within the state.Commissioner Thompson emphasized the importance of reporting suspicious investment opportunities to the ASC, urging investors to be vigilant and to report any potential scams promptly. He stated that the commission is committed to protecting investors from fraudulent schemes and will continue to monitor the cryptocurrency market for any signs of wrongdoing.The ASC's crackdown on cryptocurrency scams comes amidst a growing trend of fraudulent activity in the digital asset space, driven by the increasing popularity of cryptocurrencies among retail investors. The commission's actions serve as a reminder to investors to exercise caution and to be wary of too-good-to-be-true investment opportunities in the burgeoning crypto market.