Cryptocurrencies burst into the investing mainstream in 2017 as the values of some virtual coins and tokens skyrocketed, led by Bitcoin. Mainstream media now feature daily coverage of new cryptocurrencies, coin exchanges, and related investment products. Stories of “crypto millionaires” have attracted some investors to try their hand at investing in cryptocurrencies or crypto-related investments. But stories of those who bet big and lost are now starting to appear.
Before you invest in cryptocurrencies, be mindful that they and related financial products may be nothing more than public facing fronts for Ponzi schemes and other frauds. And because these products do not fall neatly into the existing federal/state regulatory framework, it may be easier for the promoters of these products to fleece you. Investing in cryptocurrencies and related financial products accordingly should be seen for what it is: extremely risky speculation with a high risk of loss.
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If you are a North Carolina resident and you believe you have fallen victim to a fraudulent investment involving cryptocurrencies, or believe you have invested in a cryptocurrency scheme promoted by a North Carolina resident, click here to file a complaint.
- CFTC's web page devoted to Bitcoin and other virtual currencies
- FINRA: Initial Coin Offerings (ICOs) -- What to Know Now and Time-Tested Tips for Investor
- NC Securities Division Investor Alert: Investment Scheme Involving BitClub Network
- NC Securities Division Investor Alert: Investment Schemes Involving Cryptocurrencies
- State and Provincial Securities Regulators Conduct Coordinated International Crypto Crackdown
- SEC Statement on Cryptocurrencies and Initial Coin Offerings
- CFTC Issues First Pump-and-Dump Virtual Currency Customer Protection Advisory
- A CFTC Primer on Virtual Currencies
- CFTC Customer Advisory: Understand the Risks of Virtual Currency Trading
- NASAA Reminds Investors to Approach Cryptocurrencies, Initial Coin Offerings and Other Cryptocurrency-Related Investment Products with Caution
- Get in the Know About ICO's
- FINRA Don’t Fall for Cryptocurrency-Related Stock Scams