The SEC Chairman issues a risk warning to cryptocurrency investors

ChainCatcher message, SEC Chairman Gary Gensler issued a risk warning to cryptocurrency investors on social media, stating that those providing cryptocurrency asset investment/services may not comply with applicable laws, including federal securities laws. Investors in cryptocurrency securities should understand that they may be deprived of key information related to their investments and other important protections. Furthermore, investments in cryptocurrency assets may also carry extremely high risks and are often highly volatile. Many major platforms and cryptocurrency assets have gone bankrupt and/or lost value. Investment in cryptocurrency assets continues to face significant risks.

Gensler also stated that fraudsters continue to exploit the growing popularity of cryptocurrency assets to lure retail investors into scams. These investments are rife with fraudulent activities—fake token offerings, Ponzi schemes, and pyramid schemes, as well as outright theft where project promoters disappear with investors' money.