According to a state agency, investors jobs should exercise caution while investing in bitcoin and other digital assets. On Jan. 10, the Arizona Corporation Commission announced its “Top Investor Threats of 2022” list, which included internet pitches for digital assets that promised risk-free earnings.
“The Corporation Commission’s Securities Division informs us that investments related to cryptocurrencies and digital assets are our top investor threat in Arizona,” said Chairwoman Lea Márquez-Peterson. “Stories of ‘crypto millionaires’ enticed many investors to delve into cryptocurrency jobs or crypto-related investments last year, and with that, many stories of those who bet big and lost big began appearing, and we anticipate they will continue to appear in 2022.”
On the list are other fraud schemes involving promissory notes, online money frauds, and financial schemes or temp agency near me involving self-directed Individual Retirement Accounts (IRAs). The list is compiled using a survey of securities regulators. It’s conducted by the North American Securities Administrators Association.
The top threats all have one thing in common, according to the ACC: they’re all privately provided. Many state and federal disclosure obligations are bypassed as a result of this.
“Unregistered private offerings are generally considered to be high-risk investments and do not have the same investor protection requirements as those sold through public markets,” the ACC release said.
The Securities and Exchange Commission of the United States issued an “investor alert” on Sept. 1, 2021, noting an increase in cryptocurrency offers. The news came on the same day that Satish Kumbhani and his company BitConnect were charged by the Securities and Exchange Commission. The firm is accused of defrauding investors out of $2 billion through unregistered investments in a digital asset program.
ACC recommends a philosophy of “if it’s too good to be true, then it likely is,” when considering investing in any type of digital asset and watching out for red flags such as fake client reviews or “payment of safe, lucrative, guaranteed returns over relatively short terms.”