New Jersey has cracked down on 5 crypto sites for running fraudulent investment schemes

• New Jersey has cracked down on five crypto sites for running fraudulent investment schemes.
• The state has directed them to stop operating in the state, according to a statement.
• Cease and desist orders were issued to Bulk Investments, Forte Trade, Dilna Investments d/b/a Fidelity Revenue, RealBitcore Mining, and FilefxOption.

New Jersey has cracked down on five crypto sites for running fraudulent investment schemes and has directed them to stop operating in the state, according to a statement released by the New Jersey Attorney General and the New Jersey Bureau of Securities.

Five summary cease and desist orders were issued to Bulk Investments, Forte Trade, Dilna Investments (doing business as Fidelity Revenue), RealBitcore Mining, and FilefxOption.

All platforms, according to authorities, "used a variety of tactics common in investment scams to lure investors into fraudulent cryptocurrency-investment schemes." This included issuing vague promises of profit, bogus client endorsements, limited and misleading disclosures, and failure to identify the company's principals.

None of the entities was registered with the Bureau to offer or sell securities or act as a broker-dealer in New Jersey, the statement said.

The order cited three New Jersey investors who were swindled out of a cumulative $90,000.

Collectively, the fraud perpetrated by the websites, according to the statement, include:

• Omitting material facts to potential investors
• Listing fake addresses for their places of business
• Claiming to be "registered, licensed, insured, or authorized
• Posting fabricated testimonials from previous clients

"Online scammers are exploiting the public's interest in cryptocurrency investment opportunities," said Acting Attorney General Bruck in a statement. "But we're fighting back."

Cryptocurrencies have been in a tense period as global regulators think on how best to increase oversight of the $2.6 billion industry.

Multiple efforts to rein in various products have been imposed as the market capitalization of digital assets continues to balloon.