U.S. Attorney's office for the Southern District of New York has charged two individuals for providing “shadow banking” services to crypto exchanges.
According to a statement by Geoffrey S. Berman, the U.S. Attorney for the Southern District of New York, published on April 30, 2019, “Reginald Fowler and Ravid Yosef allegedly ran a shadow bank that processed hundreds of millions of dollars of unregulated transactions on behalf of numerous cryptocurrency exchanges.”
The D.A. also claimed that both individuals ran an organization that managed to evade the Anti-Money Laundering (AML) laws that govern the operations of licensed financial institutions.
The North American Securities Administrators Association (NASAA) announced Tuesday that “more than 200 active investigations of initial coin offerings (ICOs) and cryptocurrency-related investment products are currently underway by state and provincial securities regulators in the United States and Canada.” 
SEC chairman Jay Clayton has “applaud[ed]” his “fellow regulators in the United States and Canada who are coordinating and participating in efforts to police fraud in the Initial Coin Offering (ICO) markets.” 
