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On January 31, 2026, the Tennessee Securities Division announced that it had uncovered a major cryptocurrency scam operating within the state. The scam, which had been targeting unsuspecting investors looking to profit from the booming cryptocurrency market, was found to be fraudulent and operating without proper licensing or registration.According to the Securities Division, the scam involved a group of individuals who were promoting a new digital currency and promising investors high returns on their investments. The scheme attracted investors by using social media and online marketing tactics to create buzz around the fake cryptocurrency.Officials became suspicious after receiving multiple complaints from investors who had not received the promised returns on their investments. Upon further investigation, it was discovered that the individuals behind the scam were not licensed to sell securities in Tennessee and had no legitimate business operations in the state.In response to the scam, the Tennessee Securities Division issued a cease and desist order against the individuals involved and warned investors to be cautious when investing in cryptocurrency or any other type of securities. They urged investors to thoroughly research any investment opportunities and be wary of promises of high returns with little to no risk.The Securities Division also emphasized the importance of working with registered brokers and investment advisors who are properly licensed to sell securities in the state of Tennessee. They reminded investors to always verify the credentials of individuals offering investment opportunities and to report any suspicious activities to the authorities.This crackdown on the cryptocurrency scam highlights the ongoing efforts of the Tennessee Securities Division to protect investors from fraudulent schemes and illegal securities operations. By staying vigilant and informed, investors can help prevent themselves from becoming victims of financial fraud and scams.