The thriving prevalence of cryptocurrency investing has become a topic unavoidable by regulatory agencies worldwide. The growing exposure of the cryptocurrency industry to the mainstream public has drawn the attention of investors and scammers alike, leaving many victims to deceptive crowd sales and fraudulent projects.
FTC Compelled to Take Action
Initially uninvolved in the burgeoning field of digital assets, the FTC was compelled by frequent instances of fraud to take action and educate the public for protection from false ICO promotions and investment scams.
Following the Bitcoin Funding Team scandal in March of 2018, Director of the FTC’s Bureau of Consumer Protection, Tom Pahl stated:
“This case shows that scammers always find new ways to market old schemes, which is why the FTC will remain vigilant regardless of the platform – or currency used.”
FTC Proactive on Protecting Investors
In an effort to protect investors and early-adopters of cryptocurrency, the Federal Trade Commission (FTC) has announced their “Decrypting Cryptocurrency Scams” workshop available to the public in Chicago on June 25, 2018.
The workshop “will bring together consumer groups, law enforcement, research organizations, and the private sector” to divulge the deceptive practices cryptocurrency scammers are using to fleece investors of millions.
In their official press release, the FTC described a few examples of common cryptocurrency scams:
“Scams involving cryptocurrencies include deceptive investment and business opportunities, bait-and-switch schemes, and deceptively marketed mining machines.”
Whether this workshop will succeed in preventing users from succumbing to cryptocurrency scams is yet to be determined. However, the FTC’s response to educate and protect the public is a testament to the significance of the growing cryptocurrency industry and demonstrates that digital assets are here to stay.
Cover Photo by Pixabay
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