Alongside Market Relief Package, US CFTC Warns of COVID-19-Linked Crypto Scams

United States derivatives markets regulator, the Commodity Futures Trading Commission (CFTC), has joined the list of global authorities warning the public against cryptocurrency scammers trying to capitalize on the widespread coronavirus fears.

In a statement issued on March 19, the CFTC highlighted that fraudsters commonly use major news events like the spread of COVID-19 in order to add credibility to their scam schemes or manipulate emotions.

CFTC sees increased complaints involving crypto or forex-related scam schemes

According to the statement, the agency has received hundreds of fraud complaints involving online digital assets or forex-related fraudulent schemes that promise to deliver fast and huge returns amid the intensifying coronavirus concerns.

The CFTC further outlined that coronavirus scammers don’t just stop at defrauding people into putting their money to fake investment schemes. According to the regulator, fraudsters also request unnecessary fees for cashing out and tax payment. Read more...