Investments related to cryptocurrencies and digital assets are the top threat to investors “by far,” according to new data from the North American Securities Administrators Association (NASAA).
“Stories of ‘crypto millionaires’ attracted some investors to try their hand at investing in cryptocurrencies or crypto-related investments this year, and with them, many stories of those who bet big and lost big began appearing, and they will continue to appear in 2022,” said Enforcement Section Committee Co-Chair Joseph P. Borg, Alabama Securities Commission Director.
The annual survey of North American securities regulators urged investors to exercise caution before purchasing popular and volatile unregulated investments, especially those involving cryptocurrency and digital assets.
“The most common telltale sign of an investment scam is an offer of guaranteed high returns with no risk. It is important for investors to understand what they are investing in and with whom they are investing,” said Melanie Senter Lubin, NASAA President and Maryland Securities Commissioner.
“Education and information are an investor’s best defense against investment fraud,” continued Lubin.
The report added that digital assets “do not fall neatly into the existing investor regulatory framework,” so it may be easier for promoters of these products “to fleece the public.”
“Before you jump into the crypto craze, be mindful that cryptocurrencies and related financial products may be nothing more than public…