Unfortunately, there is no effective way to police all cryptocurrency fraud. As a decentralized digital asset, cryptocurrencies are not controlled or regulated by any one person or entity. This lack of oversight can make it difficult and time-consuming to investigate cryptocurrency-related frauds and scams. The US Commodity Futures Trading Commission (CFTC) is tasked with monitoring cryptocurrency markets for fraud, manipulation, and other illegal activities.
They work with other law enforcement agencies to detect and prosecute cases of fraud and manipulation.
The CFTC has also taken an aggressive stance on helping educate investors about potential risks associated with investing in cryptocurrencies. They provide resources and warnings on their website to alert investors to the potential dangers of investing in virtual currencies. The CFTC has also taken a proactive approach to combatting fraud by launching initiatives such as Operation Crypto-Sweep, which is designed to identify and investigate potential frauds in the cryptocurrency world. Despite these efforts, it may be impossible to police all cryptocurrency fraud as the cryptocurrency market continues to grow.