SEC Advocacy Director Says Crypto Investors Shouldn’t ‘Flip A Coin’

An investor education official with the Securities and Exchange Commission (SEC) had a simple message to would-be cryptocurrency investors this week: think before you leap.

In a blog post published Wednesday, Lori Schock, director of the SEC’s Office of Investor Education and Advocacy, noted that cryptocurrencies and related investments are still relatively new, arguing that some investors “may not know exactly who [they] are dealing with, where [their] money is going or what [they] are getting in return.”

Indeed, much of the post highlighted the risks associated with investing in cryptocurrency-related markets, advising readers to “always do thorough, independent, research of the product.”

The blog post echoed past alerts published by the SEC as well as the Commodity Futures Trading Commission (CFTC). Last week, the CFTC issued a warning on “pump-and-dump” groups operating in the cryptocurrency market…

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