SEC warns bitcoin investors to watch out for shady deals

The Securities and also also also Exchange Commission warned Thursday in which investors should “exercise caution” with cryptocurrencies like bitcoin, noting state and also also also federal regulators may not be able to recoup any lost investments via illegal actors.

Many promoters of initial coin offerings (ICOs) and also also also various other cryptocurrency investments are not following federal and also also also state securities laws, SEC Chairman Jay Clayton and also also also Commissioners Kara Stein and also also also Michael Piwowar said in a statement. While regulators are trying to police these quickly growing markets, the SEC urged investors to be vigilant.

“The SEC and also also also state securities regulators are pursuing violations, nevertheless we again caution you in which, if you lose money, there can be a substantial risk in which our efforts will not result in a recovery of your investment,” the officials said.

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