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OAKLAND – California Lawyer Basic Rob Bonta urged traders in search of to put money into cryptocurrency to be cautious, amid latest volatility within the crypto market and the chapter of a significant trade.
“From celebrities to your next-door neighbor, it looks like everybody today is investing in cryptocurrency based mostly on the promise of quick and straightforward cash,” Bonta said in a statement Tuesday. “Do not fall for a fantasy – Cryptocurrency, like all investments, carries important dangers, and there is not any assure that you will see giant – or any – returns.”
Bonta urged shoppers to be careful for sure indicators whereas investing, together with ensures of huge returns, token names which can be just like well-known cryptocurrencies, firms that require funds in cryptocurrency and ventures that require giant funds upfront.
“It is best to solely make investments cash you’re keen to lose, and you have to be looking out for pink flags and potential scams,” the legal professional normal went on to say.
Bonta issued his warning after FTX, one of many largest cryptocurrency exchanges, suddenly filed for bankruptcy last week. The trade and its former CEO at the moment are dealing with investigation amongst federal authorities and in different nations for potential securities violations.
The California Division of Monetary Safety and Innovation has also launched its own investigation into the FTX collapse.
“I feel it is a house the place traders and shoppers ought to actually be very cautious,” Treasury Secretary Janet Yellen told CBS News on Tuesday, suggesting the crypto market might have extra regulation.
Specialists mentioned traders who misplaced cash within the FTX collapse may not get their money back for years, if at all.
Bonta urges potential crypto traders to visit the California Attorney General’s website for extra data on methods to keep away from scams and different pitfalls whereas investing.
Buyers who consider they might have been scammed are urged to file a criticism with the California Division of Justice at https://oag.ca.gov/report. Complaints can be filed with the state’s Department of Financial Protection and Innovation, Federal Trade Commission, Commodities and Futures Trading Commission, Securities and Exchange Commission and Internet Crime Complaint Center.
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