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SEC Creates Spoof Cryptocurrency Website To Warn Investors

“The Securities and Exchange Commission launched a spoof cryptocurrency website on Wednesday to warn investors about the risks of participating in “initial coin offerings,” or ICOs” writes Ian Wren for npr.org. In a typical ICO, inside investors are offered the first chance to buy a new cryptocurrency before it hits the market.It includes a countdown timer, promises of outsized investment returns, and even a “Meet the Team” section with SEC employees posing as cryptocurrency developers.Once lost, investor money is often extremely difficult to recover — even if the agency is able to successfully shut down the scam.Generally, if something passes the Howey test, and is therefore considered a security, it is subject to SEC regulation.
 
Source: npr.org



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