Africa

Asia

Europe

Middle East

North America

South America

United States

Cryptoassets & Blockchain Legal News

BTC $ 3607 0.94%
BCH $ 129 4.82%
ETH $ 119 1.38%

United States

CFTC Warns Against Crypto Pump-and-Dumps

February 15, 2018 by Ashley MAO

A cautionary statement about cryptocurrency pump-and-dump schemes has been released by The Commodity Futures Trading Commission (CFTC).

The statement warns investors against making purchase decisions based solely on tips found on social media as well as sudden spikes in prices and advises thorough research of “virtual currencies, digital coins, tokens, and the companies or entities behind them in order to separate hype from facts,”

The statement continued to describe a typical social media pump and dump scheme in which fake news focusing most commonly on renowned investor’s intention to pipe large amounts of money into an obscure virtual coin are used to increase the price of the token.

It’s an “old scam, new technology,” the CFTC said.

Tags: ,

More info from other sources

Ashley MAO, Coinlaw

view profile
Ashley MAO is a member of the Coinlaw team. Read more about our team.

SIMILAR NEWS

United States Latest Cryptoassets & Blockchain Legal News

Stay tuned with the legal news on blockchain & cryptoassets

Whether you are a founder gearing-up for an ICO, a token-buyer or a cryptoasset trader, subscribe to our newsletter to be informed of the latest legal developments impacting blockchain & cryptoassets in each and every jurisdiction