SEC warns crypto investors against scammers

Sun 04 Sep 2022 ▪ 18:00 ▪

4
min read – by
Cedrick Aimé GUELANG OFALABEN

More than $2 trillion worth of cryptocurrencies have been hacked this year, a record since the creation of bitcoin (BTC) in 2009. Faced with all these internet scams, authorities of several countries are taking tailor-made measures to remedy them. The US Securities and Exchange Commission (SEC) is multiplying arrests and warnings against all forms of fraud. She warns investors to be extra vigilant, as there are many scammers on social networks. The SEC therefore invites traders to be wary of offers that are too juicy, which can be decoys.

SEC warns against crypto scammers on social networks

Social networks, the new eldorado of crypto scams

The Securities and Exchange Commission (SEC) is on all fronts to stamp out the crypto scams on social networks. It’s fair game, in this year when crypto piracy has reached unprecedented heights. In her field of view, this time she is targeting scammers on the internet and exchanges. The SEC warns crypto investors: “ If a crypto investment opportunity sounds too good to be true, it probably is. »

The modus operandi of fraudsters is quite simple, build trust and then steal better. In the wake of the SEC, theOffice of Investor Education and Advocacy specifies that: ” Fraudsters often use social media to defraud investors “. To achieve their goal, they encourage investors to be afraid. That’s why the organization advises to “never make investment decisions based solely on information from social media platforms or apps “.

The SEC is a whistleblower against crypto fraudsters

This isn’t the SEC’s first foray into: the organized cryptocurrency scams through social networks. In early August, she charged nearly 11 people in a… $300 million scam. Apparently, these alleged crooks somehow played a role within a ponzi scheme in cryptography. This despicable act would have enabled them to steal the tidy sum of $300 million worth of cryptos. They targeted not only US investors but those around the world as well.

According to the SEC, it is important to take some steps before investing in an area as complex as that of cryptocurrencies. It is necessary to fully understand the workings of the industry and verify the veracity of the history, licenses and even registration status of all the people you propose to make an investment. Investor.gov is the approved site for researching contacts.

Conclusion

The SEC warns investors in its fight against the organized cryptocurrency scams. She invites them to be vigilant, as scammers are increasingly present on social networks. His advice is simple, avoid offers that are too juicy and focus on preliminary background checks of internet users making these offers. Finally, the SEC emphasizes the need to understand how cryptocurrencies work before investing.

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Cédrick Aimé GUELANG OFALABEN avatar
Cedrick Aimé GUELANG OFALABEN

PhD student of financial law and experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. Naturally, thanks to his articles, he joins the daily blockchain revolution for a better democratization of DeFi.

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