Reed Smith Client Alerts

As we previously reported, state attorneys general (AGs) are among the many regulators and law enforcers taking a significant interest in digital asset markets as more and more Americans invest in cryptocurrencies, non-fungible tokens (NFTs), and other novel digital assets that are subject to varying degrees of regulation and oversight. In nearly all states, AGs are charged with consumer protection duties, so it is not at all surprising that AGs are becoming more active in this space – and on a bipartisan basis.

In February 2022, Republican Florida Attorney General Ashley Moody launched a new consumer protection resource to help Floridians spot and avoid cryptocurrency scams, building upon a November 2021 alert from AG Moody’s office that Floridians were being targeted by a cryptocurrency-related bait-and-switch investing scheme. Likewise, Democratic Nevada Attorney General Aaron Ford recently issued an alert warning Nevadans to beware of scammers “targeting cryptocurrencies, non-fungible tokens (NFT) and quick response (QR) codes because of the ever-changing technological landscapes associated with each as more and more consumers use these technologies.” Many other AGs have issued similar warnings.