Crypto frauds are on the rise, according to the US Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy (OIEA) and Division of Enforcement’s Retail Strategy Task Force (RSTF).

In its recently published investor alert, the regulator broke down some of the most obvious warning signs of crypto scams.

The SEC’s list of red flags

While making an example of its latest enforcement action against the perpetrators of “one of the largest Bitcoin (BTC) related Ponzi-like schemes,” the SEC warned those considering entering the crypto market.

“Guaranteed” high investment returns “with little or no risk are a classic warning sign of fraud,” according to the regulator that pointed out crypto scammers often post fabricated historical returns on their websites, displaying high investment returns. 

The SEC underscored that “unlicensed and unregistered sellers commit much of the securities fraud targeting retail investors…

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