• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
Advertisement
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

US: SEC warns public of crypto scams and ICOs

September 9, 2021
in Regulations
Reading Time: 3 mins read
A A
0
US: SEC warns public of crypto scams and ICOs
0
SHARES
1
VIEWS
ShareShareShareShareShare

Crypto frauds are on the rise, according to the US Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy (OIEA) and Division of Enforcement’s Retail Strategy Task Force (RSTF).

In its recently published investor alert, the regulator broke down some of the most obvious warning signs of crypto scams.

The SEC’s list of red flags

While making an example of its latest enforcement action against the perpetrators of “one of the largest Bitcoin (BTC) related Ponzi-like schemes,” the SEC warned those considering entering the crypto market.

“Guaranteed” high investment returns “with little or no risk are a classic warning sign of fraud,” according to the regulator that pointed out crypto scammers often post fabricated historical returns on their websites, displaying high investment returns. 

The SEC underscored that “unlicensed and unregistered sellers commit much of the securities fraud targeting retail investors in the US,” while explaining that thorough background checks into the license and registration status of anyone offering an investment in securities could prevent devastating losses. 

Skyrocketing account values are another typical sign that something is fishy, according to the SEC, which pointed out that “depictions of investment accounts rapidly increasing in value and providing large returns are often fake” and strategically used as a bait to lure investors looking for a shortcut to great wealth.

“If an investment “opportunity” sounds too good to be true, it probably is,” concluded the regulator, while reminding that “the potential for high investment returns usually involves high risk.”

“Celebrities, like anyone else, can be lured into participating (even unknowingly) in a fraudulent scheme,” according to the SEC, which drew attention to fake testimonials on social media.

While warning about making investment decisions based solely on celebrity endorsements, the regulator added that scammers sometimes also pay everyday folk to pose as overnight millionaires.

ICOs and FOMO

“​​Digital assets include crypto-currencies, coins, and tokens such as those offered in so-called initial coin offerings (ICOs),” clarified the regulator.

“Before you hand over your money, verify that the individuals and firms offering an investment in securities are licensed/registered using the search tool on Investor.gov,” the SEC advised the unsuspicious, pointing out some of the most typical reasons that lead to shortsighted crypto investments.

According to the regulator, “investors may be less skeptical of investment opportunities that involve something new or “cutting-edge,” or may get caught up in the fear of missing out (FOMO).”

The infamous fear of missing out is largely driven by the rising cryptocurrency prices, read the alert in the end, warning that those anxious about missing the next big opportunity to become very wealthy, very fast are particularly vulnerable. 

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Is it time to invest in UK equities?

Next Post

The SEC may sue Coinbase if the exchange offers crypto lending

Related Posts

Turkish watchdog stretches rules and allows crypto wallets to collect aid
Regulations

Turkish watchdog stretches rules and allows crypto wallets to collect aid

February 8, 2023
6
South Korea issues guidance on security tokens, STOs
Regulations

South Korea issues guidance on security tokens, STOs

February 6, 2023
3
CFTC commits to regulating crypto products that are not securities
Regulations

CFTC commits to regulating crypto products that are not securities

February 4, 2023
4
Binance, Kazakhstan agrees on ‘wait-and-see’ approach in regulating DeFi
Regulations

Binance, Kazakhstan agrees on ‘wait-and-see’ approach in regulating DeFi

February 4, 2023
5
DOJ probes Silvergate over FTX, Alameda ties
Regulations

DOJ probes Silvergate over FTX, Alameda ties

February 3, 2023
3
Next Post
The SEC may sue Coinbase if the exchange offers crypto lending

The SEC may sue Coinbase if the exchange offers crypto lending

Recommended

‘Ability to snap up great talent’ is getting better

‘Ability to snap up great talent’ is getting better

January 20, 2023
2
Elon Musk’s Boring Company to Accept Dogecoin Payments for Loop Rides

Musk’s Twitter Payment System Will Prepare for Potential Crypto Integration

January 31, 2023
4
What do layoffs at Crypto.com mean? Crypto winter rages on

What do layoffs at Crypto.com mean? Crypto winter rages on

January 13, 2023
5
Ripple expands to massive future market with new partnership in Ripple expands to massive future market with new partnership in Brazil

Ripple partner joins forces with Visa to conquer billion-$-markets of Thailand and Australia – Report

January 29, 2023
25
1099 or W-2, What is Better for Truck Drivers?

1099 or W-2, What is Better for Truck Drivers?

February 7, 2023
4
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Coinbase-Backed DeSo Unveils MegaSwap, a “Stripe for Crypto” product, with Over $5 Million in Volume
  • 2023 will be the birth for IOTA 2.0 and the launch of a groundbreaking new blockchain era
  • Turkish watchdog stretches rules and allows crypto wallets to collect aid

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?