US Regulator Warns on Crypto Retirement Fraud

Consumers should be wary of cryptocurrency retirement accounts claiming to be approved by the Internal Revenue Service, CFTC said
06 February 2018   349

The Commodity Futures Trading Commission (CFTC) released a new circular dated Feb. 2, stating consumers should be wary of cryptocurrency retirement accounts claiming to be approved by the Internal Revenue Service. CFTC is warning investors to be cautious of sales pitches touting “IRS approved” or “IRA approved” virtual currency retirement accounts.

Taxpayers tend to focus on retirement savings more at tax time in order to increase deductions or maximize savings. As a result, some businesses may attempt to lure customers into buying highly volatile cryptocurrencies using false claims or by painting virtual currencies as less risky because they can be used for retirement saving.

 

CFTC statement

CFTC also said that custodians and trustees of self-directed IRAs may have limited duties to investors and generally will not evaluate the quality or legitimacy of an investment or its promoters.

We have recently reported that the Senate Banking Committee will hold a hearing entitled “Virtual Currencies: The Oversight Role of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission” examining the implications of cryptocurrency.

Andreessen Horowitz to Launch Crypto Investment Fund

Two new job openings by Andreessen Horowitz confirms the information about possible launch separate crypto investment fund
24 April 2018   30

One of the most influential venture capital companies of Silicon Valley intends to open its own fund, entirely dedicated to work with cryptocurrencies. This is repoted by Recode.

Rumors about the possible creation of a new division of Andreessen Horowitz have been on the web for quite some time, which is not surprising, as the company, also known as A16z, previously invested in Coinbase, Earn.com and CryptoKitties, and its founder Mark Andrissen is a big supporter of cryptocurrency .

Two new job openings by Andreessen Horowitz confirms the information that had spread earlier.

Currently, the venture company is looking for a "Manager for financial and operational activities, Cryptoactive" and "Legal Support Specialist, Cryptoactive". Both vacancies indicate that the company hires employees for an "individually managed fund that focuses on crypto assets."

The Legal Counsel will monitor "compliance with all necessary SEC requirements" and "manage the compliance of the firm / fund activities with all SEC requirements / other requirements", and the operational manager will among other things evaluate the crypto-currency assets.