The California Department of Justice has published guidelines for local residents to keep them safe from digital asset scams.
California Attorney General Rob Bonta urged California residents to be careful when investing in cryptocurrencies, which have grown in popularity in recent years. Bonta warned that the cryptocurrency market is now very unstable, and the state does not provide any insurance or guarantees that the affected users will be able to return the invested funds.
The Prosecutor General noted that many creators of cryptocurrency projects attract celebrities to promote their tokens. They may not inform their subscribers that they have received material rewards for this. Therefore, potential investors should conduct their own analysis of companies before investing their money in them, Bonta wrote.
“Even in the absence of fraud, crypto assets can pose great risks, especially if you do not have enough information to make a decision to invest in any project. Do not give in to fantasies – cryptocurrencies do not give any guarantee that you will make big profits, ”he said.
Bonta listed the main signs of cryptocurrency fraud, which should immediately alert users. It can be unexpected phone calls or emails with tempting investment offers. The organizers of fake projects can use the name and reputation of well-known companies to lure gullible investors. Therefore, it is recommended to check any information on the official websites of these companies.
Last year, New York Attorney General Letitia James announced that law enforcement agencies would increase their prosecution of crypto companies operating without registration and licenses.
Source: Bits
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