SEC Calls Out Unregistered Crypto Companies Who May Want to Defraud International Investors

SEC Calls Out Unregistered Crypto Companies Who May Want to Defraud International Investors

  • SEC calls out 28 crypto companies.
  • Investors files lawsuit against crypto firms.
  • SEC calls pause to prevent investors from being defrauded

The United States Securities and Exchange Commission (SEC) called out several unregistered crypto firms for allegedly defrauding most of their international investors. According to Coindesk, eight out of the twenty-eight suspected financial investment companies flagged by the United States’ government, top financial investment watchdog seem to aim at new cryptocurrency investors.

Flagged Crypto firms’ websites 

Some of the flagged crypto companies portray themselves as new trading companies; some of them make retirees their prime targets. One of them went to the extent of portraying itself as a law firm that helps in a crypto scam. Some of the flagged companies, such as Passive trade plan, Retirewell Investors, Smartcoins 24, and so on, have a broad spectrum of blockchain and crypto services offers on their websites’ pages.

The firms’ website showed a perfect mix of engaging rhetoric and unsupported claims to sweep unsuspecting prospective investors off their feet. One of them made itself a self-acclaimed dependable authority in digital currency investment while Smartcoins assured prospective investors to trade the best coins of 2018.

SEC calls pause

The SEC said that several international investors had filed lawsuits against all the twenty-eight cryptocurrency investment companies. The SEC furthered that these crypto companies use misleading information to deceive international investors. The United States’ financial watchdog included the crypto companies into its blacklist and called PAUSE to prevent investors from being scammed. This will alert investors of potential threats from companies they wished to invest.

The United States welcomes New Security Chief

The SEC sends out a warning note to investing public at regular intervals against opportunities that are too mouthwatering in the world of crypto. Those cautions might become sharper as Washington is welcoming a new security constable. The new United States President, Joe Biden, has appointed Gary Gensler, a crypto-savvy and former head of investment regulator, to head the SEC.

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