US SEC warns of crypto investment fraud, citing Some investors may have fomo regulation
US SEC warns of crypto investment fraud, citing Some investors may have fomo regulation
The US stock exchange supervision SEC (Securities and Exchange Commission) has warned against fraudulent investment plans with cryptocurrencies. The supervisory authority finds that some investors may be afraid to miss something in view of the price increase of some crypto assets in recent years.
sec warns investors of crypto fraud
The Office of Investor Education and Advocacy (OiEA) of the US stock exchange inspectorate SEC and the Retail Strategy Task Force (RSTF) of the Division of Enforcement published an investor warning on crypto investment fraud last week.
The message says: "Fraudsters continue to use the increasing popularity of digital assets to tempt small investors to fraud, which often leads to devastating losses" and adds:
Some investors may have Fomo [Fear of Missing Out], given the price increase of some digital assets in recent years, that they will be given an opportunity to become very rich.
The note contains some warning signs for fraud. "Guaranteed high investments ... with little or no risk" is a classic warning sign for fraud. Fraudsters can even publish fake historical returns on their websites in order to show high investments, explained the Sec.
Another sign is that sellers are not licensed or not registered. The SEC explained that "not licensed, non -registered sellers commit a large part of the securities fraud that aims at small investors in the USA".
In addition, fraudsters often make applicants to attract investors. The SEC also warned: "If an investment opportunity sounds too good to be true, it is likely."
After all, the reference warns of "fake certificates". The SEC emphasized that investors should never rely on testimonials when making an investment decision and stated:
fraudsters pay people-for example actors who pretend to be normal people who have become millionaires, social media influencers and celebrities-to promote an investment in social media or in a video.
What do you think of this Sec-Warning to crypto fraud? Let us know in the comment area below.
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