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On March 18, 2026, Rhode Island securities regulators took action against a cryptocurrency scam that has been targeting unsuspecting investors in the state. The scam, known as a Ponzi scheme, promised high returns on investments in a new digital currency but instead operated as a fraudulent scheme in which early investors are paid with the money of new investors.The Rhode Island Department of Business Regulation (DBR) issued a cease and desist order to the company behind the scam, CryptoWealth, and its founder, John Smith. According to the DBR, CryptoWealth has been operating without a license in the state and has been soliciting investments from Rhode Island residents through social media and online advertisements.In a statement, DBR Director Sarah Johnson warned investors to be cautious when investing in cryptocurrencies and other high-risk investments. She emphasized the importance of conducting thorough research and due diligence before making any investment decisions.The crackdown on CryptoWealth is part of a larger effort by Rhode Island securities regulators to protect investors from fraudulent schemes in the fast-growing cryptocurrency market. In recent years, there has been a significant increase in the number of scams targeting investors in digital assets, prompting regulators to take action to safeguard investors and maintain the integrity of the financial markets.The DBR is urging anyone who has invested in CryptoWealth or any other suspicious investment opportunity to contact the department immediately. Investors may be eligible for restitution if they have been defrauded by the scam.As cryptocurrencies continue to gain popularity and become more mainstream, regulators are working diligently to ensure that investors are protected from fraudulent schemes and bad actors. The crackdown on CryptoWealth serves as a reminder to investors to exercise caution and skepticism when considering investments in the cryptocurrency space.