To combat cryptocurrency scams, the CFTC has partnered with the SEC’s Office of Investor Education and Protection, the Financial Industry Regulatory Authority (FINRA), and the North American Securities Administrators Association (NASAA). The educational initiative is intended to provide investors with the knowledge they need to identify suspicious crypto projects and avoid being scammed, the CFTC said.
According to the regulator, one of the most common methods of deceiving investors is the so-called “pig butchering”, when criminals gain the victim’s trust and convince them to invest a large sum in a “promising” crypto project. The creators of such schemes have already managed to swindle billions of dollars from American investors.
“Our educational programs will explore common cryptocurrency scam tactics and how to stop them before they steal your assets. By working with federal, state, and consumer protection agencies, we will better educate the public about crypto scams and prevent potential asset thefts,” said Melanie Devoe, director of the CFTC’s Office of Consumer Affairs and Education.
CFTC Chairman Rostin Behnam previously said the vast majority of cryptocurrencies are not securities. In May, he warned that cryptocurrency companies could face a new wave of regulatory pressure due to the lack of clear regulation of the industry in the United States.
Source: Bits
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