FBI Warns Against ICO Scams

Dawid Paluch
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The United States Federal Bureau of Investigation (FBI) has advised crypto investors to be careful. The law enforcement agency has explained what the most common ways to fraud ICO investors are.

The US has a lot of problems with crypto-related wrongdoings. Over a month ago, a hacking group threatened to reveal strictly confidential government documents. The papers were linked with the 9/11 attacks. What has cryptocurrency to do with it? Hackers wanted bitcoins in exchange for the information.

An interview

On Feb. 19, the Federal Bureau shared its perspective in the interview with The Paypers, Netherlands financial news site.

The new website conducted this interview, because of the growing interest in cryptocurrencies. Fraudsters exploit that opportunity to scam inexperienced investors.

Please, be vigilant

The FBI representative kept anonymity in the conversation. He/She said:

“Fraudulent initial coin offerings (ICOs) misrepresent either their ability or intention to fulfil the promised security, and/or the probability of projected returns that the investment will generate. The fraud scheme may vary, but some of the consistent threads run throughout most ICO scams.”

The anonymous person also said that if something sounds too good to be true, it isn’t probably  true. The rate on investment return can never be guaranteed and if somebody claims otherwise, it is most likely a scam.

So, what to do to avoid scammers? Every ICO investor should perform due diligence before investing any money. Also, investors should be aware of which jurisdiction the offering is registered. If the ICO project isn’t under any law, it would be probably unwise to invest in it, according to FBI.

There are few more topics raised in the discussion, SEC stance on securities among others. FBI is one of the busiest law enforcement agencies in the world in terms of hunting crypto-related frauds.

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