US Trade Commission: By the end of the year, investors …
US Trade Commission: Investors To Lose Over $ 3 Billion By End Of Year Due To Crypto Scams
Consumers lost $ 532 million to cryptocurrency fraud in the first 2 months of 2018, CoinDesk reports, citing data from the US Federal Trade Commission..
Speaking at a cryptocurrency fraud event, Bureau of Consumer Protection Director Andrew Smith said the value could rise to billions of US dollars by the end of the year..
“Consumers will lose more than $ 3 billion by the end of 2018,” he said..
One of the main problems complicating consumer protection in this area is insufficient attention from the investors themselves. This was pointed out by the director of enforcement of the Texas Securities Office, Joe Rotanda.
Coin Center Research Director Peter Van Valkenburg noted that people are victims of fraudulent schemes such as exit scams and schemes like "pump-and-dump", for believing sentences that are too good to be true.
“I believe that no one should ever invest in cryptocurrencies more than they are willing to lose, if they want to participate at all,” Van Valkenburg said. “This message must be repeated over and over again.”.
Rotanda believes that regulators should take a more active position “in any type of new markets, especially in such” as cryptocurrency.
“Regulators should be the first link that will determine the companies that want to work honestly,” he said. “Companies that are trying to do everything according to the rules talk to regulators on the phone, rather than receive orders to immediately stop illegal activities, right? Not being summoned to court. We usually manage to work with them. At the same time, we must identify fraudulent schemes and act quickly to stop them. “.
The discussion was closed by Van Valkenburg, who reiterated that investors need to take a closer look at the offers in which they invest their money: “If you yourself cannot explain why a particular token is needed, you should not buy it. If you can’t separate the wheat from the chaff or understand the difference between technological nonsense and real innovation, don’t get involved. “.
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