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In a landmark move to protect investors from fraudulent digital currency schemes, South Dakota securities regulators have taken action against several cryptocurrency scams operating in the state.On July 12, 2025, the South Dakota Division of Securities issued cease and desist orders against three companies offering cryptocurrency investment opportunities that were found to be operating illegally in the state. The companies, which were not named in the orders, were allegedly promising investors high returns with little to no risk, a red flag that often indicates a Ponzi scheme.According to the Division of Securities, these companies were not registered to offer securities in South Dakota and were not providing investors with the necessary disclosure information required by law. In addition, the companies were allegedly using misleading marketing tactics to lure unsuspecting investors into their schemes."Protecting investors from financial fraud is our top priority," said Bob Smith, director of the Division of Securities. "We will not tolerate any company that tries to take advantage of South Dakota residents by peddling illegal and deceptive investment opportunities."Cryptocurrency scams have been on the rise in recent years as the popularity of digital currencies like Bitcoin and Ethereum has soared. These scams often target inexperienced investors who are attracted to the promise of quick and easy profits. However, many investors end up losing their entire investment when the scam is exposed.To combat this growing trend, the Division of Securities has been working closely with federal regulators and law enforcement agencies to monitor and investigate suspicious investment schemes. In addition to issuing cease and desist orders, the Division has also been conducting educational outreach programs to help investors recognize the warning signs of fraud."We want to empower investors to make informed decisions and avoid falling victim to scams," said Smith. "By staying vigilant and asking the right questions, investors can protect themselves from unscrupulous actors in the financial markets."The Division of Securities is urging anyone who believes they may have been a victim of a cryptocurrency scam to contact their office immediately. Investors can also visit the Division's website for resources and tips on how to avoid falling for investment fraud.