Investigations in Full Swing to Expose Digital Currency Scams

Cryptocurrencies have started their success journey, but the truth is that many are trying to cash out on this success. This is the reason that many digital currency scams have emerged on the forefront in the recent years that need the attention of the authorities.

At the moment about 40 regulators in Canada and the US are working to unleash some of the digital currency scams. About 70 investigations cases are in process. If we look at the records, then about 35 cases are pending or completed so far.

The basic objective of these investigations is to uncover all the unregistered securities that promise huge returns to the investors. The problem here is that the investors are completely oblivious to the risks they face and these investments can turn out to be a fatal error on the part of the investors.

At the moment many of the scams seem to be using the fake addresses. Some of these fake crypto programs are also using the photos of the high-profile individuals. This is why they pose more risk to the investor because they are giving the impression that investing in them is a safe move on the part of the investor.

The alarming part is that there is no end to the digital currency scams if the investors dig down into this market. Just last week Wall Street Journal revealed some shocking revelations. If we look at about 1470 ICO records, then the truth is that about 271 of the ICO have red flags. The worst part is that these ICO presented fake executive teams as well.

An organization backed by the Chinese government also presented its report recently, and it revealed that currently there are about 421 fake cryptocurrencies. The truth is that this figure is quite high.

If we look at the current scenario, then the demand for digital currency is quite high at the moment. This is why most of the investors are even willing to take extreme steps so that they can gain exposure to the digital currency. This is why the risk for the investors has increased in the recent years.

The best approach to adopt at this point in time is to uncover all the scams so that investors do not fall prey to these scams. Once the scams are revealed and taken to task, then this will turn out to be a lesson for many.

2018-05-23T09:25:22+00:00