US Securities and Exchange Commission Issues Advice for Crypto-Curious Investors, Warns Against ICOs and Digital Asset Scams

The rise in the number of initial coin offerings (ICO) and initial exchange offerings (IEO) is giving unscrupulous individuals the opportunity to run crypto-related scams.

To combat illegal ICOs and IEOs, the US Securities and Exchange Commission (SEC) put together a list of resources that helps investors navigate the complex realm of investing in digital assets.

The list covers a wide array of topics that helps investors avoid scams including:

• IEOs that may be in violation of federal security laws
• ICOs that claim securing SEC approval
• fraudulent crypto websites that promise “guaranteed high investment returns”
• scammers using false SEC and Commodity Futures Trading Commission (CFTC) claims on digital assets to lure investors.
• fraudsters building bogus crypto websites and offering sham deals 
• questions that investors should consider before investing in digital assets
• fraudulent schemes that leverage celebrity endorsements 
• suspended public companies after claiming to invest in cryptocurrencies
• background information on ICOs and the potential warning signs of an investment scam
• background information on Bitcoin and the red flags of an investment fraud
• Ponzi schemes using virtual currencies
• investment ads or promotions that ask for your phone number or email address

The resource list is comprehensive as it is part of the SEC’s efforts to keep investors away from the jaws of scammers in the cryptocurrency world.

Featured Image: Shutterstock/Alex Volot