SEC Issues Crypto Investor Alert as It Makes Major U-Turn

The U.S. Securities and Exchange Commission has reiterated its crypto scam warning in its recent social media post.

The post, which was originally published in May, described various fraud schemes that are typically used to target cryptocurrency investors.

One of such schemes involves contacting potential victims on social media in order to achieve a certain level of intimacy. After gaining the victims’ trust, fraudsters start pitching investment opportunities. Bad actors might even pose as supposed insiders.

Such schemes are known as “pig butchering scams.” As reported by U.Today, the FBI also recently issued a warning about such schemes.

Notably, the proliferation of AI has also led to bad actors increasingly relying on emerging technology. The latest AI tech makes it possible to realistically alter the voices of famous people. As reported by U.Today, a fake live stream with Apple CEO Tim Cook gained traction on YouTube on the cusp of the company’s most recent event. The livestream, which was realistically faking Cook’s voice, was promoting a fake cryptocurrency giveaway.

The SEC has also warned about various pump-and-dump schemes that might involve red-hot meme coins.

The agency’s most recent investor alert has coincided with a series of head-scratching moves.

As reported by U.Today, the agency recognized Ethereum as a non-security in its settlement with the trading platform eToro.

Now, the SEC has apparently dropped the controversial term “crypto asset security” after using it in its most recent investor alert.

Stuart Alderoty, chief legal officer at Ripple, claims that the SEC has become “a twisted pretzel of contradictions.”

Source