Securities Fraud Lawyers Blog
“Cryptocurrency”, “blockchain”
These are the buzz words among investors as we head into 2018. Building on the success and popularity of Bitcoin – which seems to be hitting new record highs every week – has caused a stir among investors, and it’s getting the attention of businesses.
As investors look to find out how they can invest in the emerging cryptocurrency boom, startups and businesses are trying to find ways to capitalize. Initial Coin Offerings (ICOs) have started popping up as opportunities for investors to get involved with cryptocurrency investing at ground-level. However, financial regulators say investors need to be aware of fraud risks.
The Securities and Exchange Commission (SEC) is warning investors to exercise caution when considering ICO investment opportunities or other forms of cryptocurrency investing. Due to the emerging nature of crypto-assets, state and federal regulators say it may be difficult to protect investors against fraud. A recent Reuters report states that adequate enforcement of this new industry does not exist and regulators may be unable to investment-losses due to fraud.
Another added risk for investors is the recent revelation of widespread security vulnerabilities in nearly all consumer phones, laptops and computers. The recently discovered CPU flaws leave billions vulnerable to having sensitive financial information open to hackers. The two flaws, dubbed Meltdown and Spectre, affect nearly all digital devices at the CPU level. For investors in Bitcoin or other forms of cryptocurrencies, that means your cryptocurrency keys may be left vulnerable to a hack.
What You Can Do if You’re Intersted in Cryptocurrency Investing
Don’t let this news scare you. As with any emerging market or industry there is a learning curve. Regulators are taking action to address enforcement policies for ICO and other cryptocurrency investing opportunities. However, they recommend any investor interested to diligently research a company or business before deciding to invest.For more information on ICO-related investing, check out our blog.
As for Meltdown and Spectre-related hacker risks, computer processor manufacturers are working to fix the flaws. In the meantime, here are some things you can do to protect yourself and your assets against hacker-risks.