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SEC Issues Investor Alert on Crypto Asset Scams

Published 05/30/2024, 07:30 PM
Updated 05/30/2024, 08:15 PM
SEC Issues Investor Alert on Crypto Asset Scams

  • Scammers build trust via social media, posing as friends or using AI to create realistic but fake websites and deepfakes.

  • Fraudsters lure victims into investing in fake crypto assets, often allowing small withdrawals before demanding more funds.

  • Pump-and-dump schemes and advance fee frauds exploit victims, often leading to significant financial losses.

The U.S. Securities and Exchange Commission (SEC) has issued an Investor Alert highlighting fraudsters’ methods to lure victims into scams involving crypto asset securities. This alert from the SEC’s Office of Investor Education and Advocacy aims to protect retail investors from falling prey to these fraudulent schemes.

Fraudsters frequently exploit the popularity of crypto assets, such as cryptocurrencies, coins, and tokens, to perpetrate scams. These scams are often difficult to trace and recover funds from, as fraudsters use technology to obscure their identities and hide the trail of funds.…

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