Investors Should Beware Of Potential Cryptocurrency Investment Rip-Offs

Bitcoin has reached the mania stage, starting 2017 trading at $1,000 before almost hitting $20,000 last month and then falling to $10,000 on Tuesday. The skyrocketing price of bitcoin and other cryptocurrencies has attracted scads of speculators looking to make a quick buck, setting off alarm bells for securities regulators. The Securities and Exchange Commission, which we believe has been going easy on corporate America and Wall Street under the current administration, has been surprisingly tough on cryptocurrencies. The Commission kicked off the year by warning investors that they should “exercise caution” with cryptocurrencies like bitcoin, noting that state and federal regulators may not be able to recoup any lost investments from illegal actors. Last month, the SEC halted an Initial Coin Offering, or ICO, of an online food review company – Munchee – for failure to register as a security offering with the SEC.  The registration requirements…

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