Schemes that are linked to crypto (and digital assets generally) were the leading issue, followed by promissory notes frauds, social media scams, and schemes targeting self-directed retirement accounts.
“By far, NASAA’s securities regulators revealed that investments related to cryptocurrencies and digital assets is our top investor threat,” said Joseph Borg, Alabama Securities Commission director and co-chair of NASAA’s enforcement committee, in a release.
“Stories of ‘crypto millionaires’ attracted some investors to try their hand at investing in cryptocurrencies or crypto-related investments this year, and with them, many stories of those who bet big and lost big began appearing, and they will continue to appear in 2022,” he said.
NASAA said that the added uncertainty about where digital assets fit within the traditional regulatory framework may make it easier for fraudsters to dupe investors.
“Before you jump into the crypto craze, be mindful that cryptocurrencies and related financial products may be nothing more than public facing fronts for Ponzi schemes and other frauds,” said Joseph Rotunda, Texas State Securities Board enforcement division director, and vice-chair of NASAA’s enforcement committee.
“Investments in cryptocurrency trading programs, interests in crypto mining pools, crypto depository accounts and securitized tokens should be seen for what they are: extremely risky speculation with a high risk of loss,” he…
