SEC Warns About False Regulatory Agency Endorsements Promoting Crypto Asset Investments
The U.S. Securities and Exchange Commission (SEC) has released an alert warning investors about false claims about the SEC and the Commodity Futures Trading Commission (CFTC) promoting investments in digital assets.
— SEC_News (@SEC_News) October 14, 2018
Released on October 11, the regulatory agency published an alert about false claims related to cryptocurrency investments. According to the official statement, fraudsters may use false claims to lure investors and purchase virtual currencies, tokens and other digital coins such as the ones offered by Initial Coin Offerings (ICOs).
As per the report, both the SEC and the CFTC are aware of these fraudsters that are trying to take advantage of investor claiming that they are backed by these agencies. Additionally, the SEC and the CFTC recommend investors to be skeptical about those attempting to sell digital assets making claims about SEC or CFTC actions.
Some of the false claims include:
- Having advanced knowledge of future agency actions
- Using the SEC or CFTC seal to promote cryptocurrencies or digital assets
- Advertising that agency officials are working with certain digital industry participants to bring financial products to the market.
All the official information will be provided using the official government websites such as the SEC.gov, Investor.gov or CFTC.gov. At the same time, the agencies inform that they do not endorse or sponsor particular securities services, firms or individuals. In addition to it, the report says that real government officials or staff would never ask for money by phone or by email, due to new regulations.
The SEC informs on the matter:
“Do not trust information provided by someone contacting you with an investment idea when that person claims to be affiliated with any federal government agency, and always be cautious about providing personal information to anyone you do not personally know.”