Fraud will likely increase in cryptocurrency markets, an attorney in the SEC’s enforcement division recently warned.
The prediction follows an intensified crackdown against swindling in decentralized finance platforms and other cryptocurrencies.
“There’s going to be a lot more fraud,” the attorney said. “It’s very easy for fraudsters to use confusing terminology, mislead about what the actual investment is” and quickly move profits abroad.
An increase in the number of companies now enabling customers to transact in cryptocurrency also adds new complications and uncertainties.
In response, the SEC is stepping up its enforcement team to investigate violations in securities law related to crypto. Read more.