A warning to investors about potential cryptocurrency scams has been jointly issued by the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The SEC said that it is aware of a number of recent reports regarding fraudulent activity involving digital currencies such as bitcoin, ethereum, litecoin or ripple. After investments are made, victims often never hear from the perpetrators again. The agencies have provided six warning signs for identifying when schemes may be a scam, including offers of guaranteed high returns and sellers lacking a licence. The agencies are encouraging investors to cross-reference scheme operators with the SEC's official licence database, noting unlicensed investments likely represent a scam.
A warning to investors about potential cryptocurrency scams has been jointly issued by the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The scams involve fraudsters posing as crypto trading businesses and collecting funds from investors. After investments are made, victims often never hear from the perpetrators again. The agencies have provided six warning signs for identifying when schemes may be a scam, including offers of guaranteed high returns and sellers lacking a licence. The agencies are encouraging investors to cross-reference scheme operators with the SEC's official licence database, noting unlicensed investments likely represent a scam.