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Surely, Bitcoin and cryptocurrency do present gleaming future potentials. More than ever before, new crypto start-ups have emerged parading the enormous benefits associated with the cryptocurrency market. The fact that the cryptocurrency market is a very liquid one and also has the volume to its advantage makes it catchy to every investor.
Also, the idea of having the same currency everywhere transcending geographical location gives it a rare edge.
In the light of these, CFTC has taken upon itself to issue a red alert to crypto users and investors alike to know which digital asset company to put their funds into, also to verify the authenticity of such companies.
In a recent release titled” Binary Options Fraud,” it gives an insight to crypto users and the general public on how to verify a digital asset company’s legitimacy and also things to watch out for.
CFTC on Crypto Ponzi Scheme
It is noteworthy and commendable how the Commodities Futures Trading Commission (CFTC) took upon itself to warn unsuspecting individuals to beware of scams who loom on the future potentials presented with cryptocurrency.
This is after slamming a lawsuit against Circle Society, Corp and its CEO, David Gilbert Saffron. The company based in Nevada had operated in similitude to a Ponzi scheme. The company created in 2017 had sought funds from unsuspecting investors with the claims of 300% interest on their investment in a few weeks.
The company highlighted that the funds will be used in cryptocurrency exchange trading which it never did. Saffron’s vast experience as an options trader also helped in assuring the investors of the authenticity of the claims.
In a statement contained in the lawsuit, CFTC chairman highlighted the urgent need to remove the bad eggs in the crypto sphere pointing out that they may stunt the growth of the emerging cryptocurrency sector. He also stressed on the essence of integrity in the crypto space.
Circle society is suspected of defrauding its clients to the tune of $11 million and is charged with fraudulent solicitations, misappropriation of funds, and violations of registration laws alongside its owner.
Recently, the regulatory body came out to classify Ether as a commodity.