Sensing a rise in crypto-related scams and fraudulent investment schemes, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have issued a joint warning to investors, encouraging them to take a more thorough approach to verifying potential investments in the space.

The warning was published on April 24, 2019, by the SEC’s Office of Investor Education and Advocacy and the Office of Customer Education and Outreach at the CFTC.

In the notice, the agencies described crypto-related investment scams in which perpetrators — disguised as cryptocurrency trading businesses and advisory firms — collect funds from unsuspecting investors.

“In some cases, the fraudsters claim to invest customers’ funds in proprietary crypto trading systems or in ‘mining’ farms. The fraudsters promise high guaranteed returns (for example, 20-50%) with little or no risk,” according to the warning. “After the investors make an investment, typically using a digital asset such as Bitcoin, the…

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Source: https://thebitcoinnews.com/sec-cftc-issue-investment-warning-on-crypto-scams/