The United States Securities and Exchange Commission (SEC) and the United States Commodity Futures Trading Commission (CFTC) issued a joint warning to investors about fraudulent websites that provide advisory, investment and trading activities in the field of cryptocurrency. This is reported by Bitcoin Magazine.
The statement said that the staff of both agencies monitored fraudulent investment projects that claim to be engaged in "digital assets or cryptocurrency."
The organizers of such projects often claim that they can invest customer funds in special trading systems or mining farms. They also promise guaranteed high profits (from 20 to 50%) without risk to customers.
In order to protect investors, watchdogs have compiled a list of six distinguishing features by which fraudulent projects can be identified. They included a guaranteed return on investment and promises of no risk, as well as complex, non-transparent or misleading language, designed to disorient investors.
In addition, investors are advised to always familiarize themselves with the license and registration status of operators of such companies on Investor.gov. Often, fraudsters use fake names and photos and can provide contact numbers in the US, although they operate outside the country.
The warning also says that if the offer is “too good to be true,” and its advertisements are constantly calling for “invest right now,” then it is most likely a fraudulent scheme.
American regulators have warned investors about the dangers of cryptocurrency fraud for years. Last spring, the SEC created a “fraudulent ICO” website to educate investors.