Why the SEC Issued a Warning to Bitcoin Futures Investors – Explica .co
The US Securities and Exchange Commission (SEC) has issued another warning bulletin for Bitcoin investors. Specifically, the Commission has warned of the dangers for BTC futures traders and asked them to “carefully weigh the potential risks and benefits of investing.”
The newsletter called “Funds Trading in Bitcoin Futures” is part of a long list of these articles dedicated to cryptocurrencies and digital assets.
The first was published on July 23, 2013 and was titled “Investor Alert: Ponzi Schemes Using Virtual Currencies.” In this article, the Commission warns investors about Bitcoin and explains in detail the characteristics of a Ponzi scheme, a type of scam in which existing participants receive payments from new contributors.
The SEC classified these schemes as illegitimate investments and claimed to be concerned about scammers using Bitcoin to commit or…