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   506

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.

Bittrex to Go For Maintenance After 1/3 Funds Moved

Users suspects hack, but exchange says "funds are safe"
05 December 2019   62

The Bittrex cryptocurrency exchange has announced scheduled maintenance today, December 5, from 22:00 to 23:00 (GMT). On the eve, a third of its assets were transferred to an unknown wallet.

During maintenance, users will not be able to log into the system or use the APIs. Trading will be suspended.

On December the 4th, populat Twitter account posted that "43,564 #BTC (313,074,134 USD) transferred from Bittrex to unknown wallet." Users suspected that the exchange was hacked, but the exchange . 

Closures for scheduled maintenance only heightened suspicion. However, the Bittrex team assures that "that claim is false."