SEC adds deceptive crypto platforms to its list of public alerts

New additions to the list of “public alerts”

The American regulatory authority, the Security and Exchange Commission (SEC), just added new companies it calls “misleading” to its blacklisti.e. platforms that are not registered with the authority and therefore operate without a legal framework.

In a Monday press release, the SEC clarified that its list of “public alerts” is not intended to sanction companies, but only to warn investors that these platforms are not registered with the regulatory authority. Thus, the probability of being scammed is much greater. But this list does not mean that these companies have violated US securities laws.

The US regulator launched this list in 2007 with the rise of online investing. It aims to warn users of any risk of scam, deception or fraud. Among the names of misleading platforms are “ Super Binance », « BTC Investments or even “Bitpayfxpro”. names that could lead to confusion with the famous Binance and FTX platforms.

The latest additions to the list include the platforms “Bittrade Capitals”, “247Crypto Trade” and “Bitpayfxpro”. The SEC says they all used misleading information to primarily solicit non-US investors.

👉 Find our tutorials on the best platforms

The desire to maintain a healthy environment

Generally, the companies that end up on this list of the American authority have suffered many complaints from users. The SEC has not detailed the reason for these complaints, but one can quickly suspect that the users have been deceived.

For example, take the deceptive platform SuperBinance. If we stick to its name, it could be confused with the famous Binance platform thinking that it is an extension of the existing platform.

An average user who does not do the necessary research could deposit their funds and buy cryptocurrency on this deceptive platform. Unfortunately for him, since the platform is not registered, it has not undergone the necessary security checks with the American regulatory authority. Thereby, he could get scammed.

The SEC has the prerogative of maintaining a healthy environment and protecting consumers, just like our Financial Markets Authority (AMF) in France. As a user, it is relevant to carry out research yourself to find out whether the platform is registered locally.

👉 Related – SEC Denies Bitcoin (BTC) ETF Approval Again

Source: SEC

Newsletter 🍞

Get a crypto news recap every Sunday 👌 And that’s it.

What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.

Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky in nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.

About the Author : Timothy Bernines

twitter-soothsayerdata

Passionate about the world of investment, cryptocurrencies have been attracting my attention for a few years now. Having a major interest in the fields of new technologies and Web 3, this is why I naturally wanted to write articles on Cryptoast, in order to contribute to the democratization of this universe in society.
All articles by Timothé Bernines.

Leave a Comment