Cryptocurrency investors have been rewarded over the last 12 months with incredible gains. In the terminology of Peter Lynch, Bitcoin and Ethereum have both been 20 baggers over the last year or so, with some altcoins producing even better returns. And that’s not even mentioning the stunning rise of nonfungible tokens (NFTs) in 2021. From NBA TopShot to Cryptopunks to digital art, crypto collectibles have seen a meteoric rise in value.
Unfortunately, grifters and con artists are drawn to wildly profitable assets like moths to lightbulbs. The bull market for cryptocurrency includes many different sublevels and the market for scammers is thriving. And unlike assets stored in the bank or brokerage account, there’s no FDIC or SIPC coverage to protect your cash from hackers, thieves and other tech-savvy criminals.
If you unwittingly fall victim to one of these scams, your avenues of recourse will be limited (and possibly nonexistent)….