The California Attorney General’s office announced Tuesday the launch of a new website that provides information about the risks and fraud associated with buying cryptocurrencies.
of website Includes tips on buying and trading cryptocurrencies and non-fungible tokens (NFTs), and frequently asked questions about selling and trading digital-only assets.
“From celebrities to neighbors, it seems everyone these days is investing in cryptocurrencies on the promise of making quick and easy money,” California Attorney General Rob Bonta said in a news release. Don’t be fooled, like all investments, cryptocurrencies involve significant risk and there is no guarantee of significant returns.”
Bonta said the website will provide Californians looking to exchange currency online with a resource that offers advice on how to avoid scams and other pitfalls.
The Attorney General has said anyone looking to join the crypto craze should always do additional research before investing in a particular asset, urging those who are spending money to spend it wisely. urged.
“You should only invest money that you are willing to lose, and you should watch out for red flags and potential fraud,” Bonta said.
Unlike money held in banks or credit unions, there is no government guarantee or insurance for digital assets, the AG office said. If you lose money to crypto scams or your coin goes bankrupt, you’re on your own.
Bonta encourages Californians to visit the new website to stay up to date on the latest cryptocurrency scams and to subscribe to updates from other public agencies that process and monitor cryptocurrency exchanges. Recommended.
Buyers are also advised to watch out for signs of cryptocurrency fraud.
The Attorney General’s Office has provided the following warning signs to look out for when buying and trading cryptocurrencies.
- Guaranteed big returns in exchange for money or cryptocurrencies: If it sounds too good to be true, it probably is. Remember that cryptocurrencies are not guaranteed big returns.
- Token names similar to well-known cryptocurrencies: Scammers use the names of tokens that look very similar to cryptocurrencies such as Bitcoin and Ethereum to assume that the tokens are real or associated with real cryptocurrencies. Look carefully at the name and do a little research to see if the cryptocurrency is legit.
- Request payment in cryptocurrencies: No legitimate company will force you to pay in cryptocurrencies or other crypto assets.
- If you need a large prepayment: The need to pay large sums of money to participate in a particular money-making venture is a signal that you are being scammed.
- Unsolicited Phone Calls or Emails: Never give your account information to anyone who calls or emails you unsolicited, even if it claims to be from a legitimate company. Instead, hang up or close your email, go to her website at the company, and contact the company using the website’s phone number or email.
- Celebrity Endorsements: Not all celebrity endorsements mean the underlying crypto assets are scams, but it’s important to remember that celebrities are paid heavily to promote these assets. is.
If you believe you have been scammed, or believe that someone is trying to scam you, we recommend the following: file a complaint With state and federal regulators.
Complaints can also be filed with the California Department of Financial Protection and Innovation, the Federal Trade Commission, and the Securities and Exchange Commission.
