SEC, CFTC to Issue Investment Warning on Crypto Fraud

In order to protect investors, regulators have compiled a list of six distinguishing features by which fraudulent projects can be identified
26 April 2019   237

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.

1st Alternative Zcash Client to be Created by Parity

The responsibility for the continued development and support of the new client called Zebra will be with the Zcash Foundation
18 June 2019   126

The leading developer of solutions for the Ethereum ecosystem, Parity Technologies, presented the first alternative client for cryptocurrency Zcash.

A new client called Zebra is designed to improve the security of the Zcash network. So, if the original Zcashd client will not be able to operate for some reason, the blockchain will be supported by nodes on Zebra.

In addition, with the help of an alternative client, developers will be able to identify bugs and eliminate defects in consensus.

The community wins across the board, as there are now more core developers working on clients, with more interests represented and clients taking different approaches on how to build apps on top. Zcash can now boast a more diversified community that can effectively tailor experiences for Layer 2 developers as well as end-users.
 

Fredrik Harryson
CTO, Parity Technologies

The responsibility for the continued development and support of the Zebra will be with the Zcash Foundation.