An annual survey of state and provincial securities regulators conducted by the North American Securities Administrators Association shows that investments linked to cryptocurrencies and digital assets topped the list of investor threats.
“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,” Joseph Borg, director of the Alabama Securities Commission and co-chair of NASAA’s enforcement section committee, said in a statement published Monday.
NASAA said promoters of digital assets may easily deceive the public since such products “do not fall neatly into the existing investor regulatory framework” and that investors should practice caution before buying “volatile unregulated investments.”
“Before you jump into the crypto craze, be mindful that cryptocurrencies and related financial products may be nothing more than public facing fronts for Ponzi schemes and other frauds,” said Joseph Rotunda, director of the Texas State Securities Board Enforcement Division and vice chair of NASAA’ enforcement section committee.
The other investor threats on NASAA’s annual list were fraud offerings associated with promissory notes; money scams offered via social media and internet investment schemes; and financial schemes linked to self-directed individual retirement accounts.
On Jan. 27, the Potomac Officers Club will bring together distinguished government and industry leaders to discuss the national security aspect of digital currencies. National Cyber Director Chris Inglis will deliver the keynote speech at POC’s Digital Currency and National Security Forum.