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SEC Issues Urgent Crypto Scam Alert
Alex Dovbnja
The SEC mentioned meme coins in its investor advisory
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The US Securities and Exchange Commission (SEC) did so published a warning for investors on cryptocurrencies.
The SEC said scammers tend to exploit innovative investment technologies to perpetuate investment scams.
Scammers particularly aim to exploit the hype surrounding artificial intelligence (AI) technologies to lure potential victims. Scammers might use attractive buzzwords to promote their scams.
Furthermore, these bad actors may also rely on cutting-edge artificial intelligence technologies to spoof their identities. The rapid growth of artificial intelligence has made it much easier for scammers to impersonate government agencies and prominent individuals (such as Brad Garlinghouse, CEO of Ripple).
The SEC also warned against scammers who contact potential victims via social media to establish an online relationship and promote investment scams. Therefore, users are strongly advised against making investment decisions based solely on some advice on the Internet. Of course, you should never share your sensitive financial information with strangers on the Internet.
Additionally, the SEC also warned about pump-and-dump schemes involving digital assets.
The warning comes amid the growing popularity of meme coins, with numerous celebrities embracing the latest cryptocurrency craze by launching their own tokens.
It’s worth noting that some recent celebrity coins have been accused of being scams.
The SEC specifically mentioned meme coins in its investor alert, saying that their promoters often aim to artificially increase the price of a particular coin to capitalize on the hype.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.