SEC issues warning regarding Bitcoin investment

Share this article:

The U.S. Securities Exchange Commission (SEC) has issued a lengthy warning to investors about the dangers of virtual currency, specifically Bitcoin.

In its advisory, the agency, which serves as a strong-arm in regulating the U.S. securities markets, noted that because virtual currency is considered “new product, technology, or innovation” it attracts scam artists to take advantage of investors.

Additionally, tips were shared regarding what signs to look out for that could result in investment fraud, including offers that are unsolicited, those that guarantee a “high investment return,” and those that come from unsolicited sellers.

The agency believes that Bitcoin has yet to establish a “track record of credibility,” and since anonymity is a big part of the cryptocurrency, recovering any losses associated to fraud may be difficult task. The official alert used Mt. Gox's recent collapse as an example.

Share this article:
You must be a registered member of SC Magazine to post a comment.

Sign up to our newsletters

TOP COMMENTS