Securities Crime
Securities crime, also known as white-collar crime, is an illegal activity involving the buying and selling of securities. This type of criminal activity can range from insider trading and market manipulation to fraud and money laundering. Securities crimes involve a variety of actors, including brokers, hedge fund managers, mutual funds advisors, traders, accountants and other professionals in the financial services industry. Victims include individual investors as well as pension funds or other institutional investors who may be defrauded by unscrupulous operators in the securities markets.
The U.S government has enacted numerous laws over the years to combat such activities that threaten public trust in capital markets: The Securities Exchange Act of 1934 (SEA) established exchanges for dealings in securities; The Investment Company Act 1940 (ICA) regulates investment companies; The Investment Advisers Act of 1940 (IAA) regulates investment advisers; And The Sarbanes-Oxley Act 2002 (SOX) sets standards for all U.S publicly traded companies’ accounting practices and internal controls. In addition to these federal regulations there are also state laws which govern security transactions within their respective jurisdictions .
In order to protect investors from potential losses caused by fraudulent activity related to cryptocurrency investments , it is important for individuals or institutions investing in digital assets understand their rights under applicable law , have procedures designed to detect inappropriate behavior , employ rigorous KYC/AML procedures when dealing with customers and vendors ,and remain aware of current trends associated with various types of white collar crime . Additionally it is essential that organizations consider implementing measures such as creating a whistleblower system wherein employees can safely report suspicious activities without fear retribution or adverse consequences
