Gary Gensler issues crypto investment risk warning

SEC Chairman Gary Gensler issued a statement on the X platform stating that individuals providing crypto asset investments/services may violate applicable laws, including federal securities laws. Investors participating in cryptoasset securities should understand that they may lose critical information and other important protections related to their investments. In addition, investing in cryptoassets can also be associated with a high level of risk and often severe volatility. Many major platforms and cryptoassets have experienced bankruptcies and/or devaluation. Continuing to invest in cryptoassets requires recognizing significant risks. Gensler also pointed out that fraudsters have been taking advantage of the popularity of crypto assets to lure retail investors into participating in scams. These investment environments are rife with fraud, including fake token offerings, Ponzi schemes, pyramid schemes, and outright theft in which project sponsors disappear with investors’ funds.