It’s Canadian Crypto Clampdown Week

Leave it to crypto to stir up the most drama between U.S. feds and Canadian entrepreneurs since Prohibition era bootlegging. As you read in yesterday’s daily Brew, the SEC’s suing Canadian messaging startup Kik over a $100 million 2017 token sale, while the FBI’s investigating Quadriga CX, the Canadian exchange that inexplicably lost ~$140 million in customer assets.

SEC/Kik tensions have simmered for a while, but now the gloves are off. The crypto community will be paying close attention to the case, which could clarify how, when, and where tokens count as securities.

FBI saddles up

The agency confirmed it’s investigating Quadriga with buddies from the IRS, DOJ, and D.C. U.S. Attorney’s Office. Armed with the coolest law enforcement name (don’t @ me), the Royal Canadian Mounted Police are also reportedly probing the bankrupt exchange.

• For your consideration: a full account of the Quadriga dilemma

Bottom line: Fly too close to the sun (toe the line with the law) and you’ll singe your wings (jeopardize your crypto operation). Regulatory and law enforcement agencies are happy to step in and hasten your fall from grace.