U.S. SEC Chairman issues risk warning for crypto investments

SEC Chairman Gary Gensler issued a risk warning to cryptocurrency investors on his social media platform, stating: "Those who offer cryptocurrency asset investment/services may not comply with applicable laws, including federal securities laws. Investors in cryptocurrency securities should understand that they may be deprived of key information and other important protections related to their investments. In addition, cryptocurrency investments may also have extremely high risks and often fluctuate greatly. Many major platforms and cryptocurrency assets have already gone bankrupt and/or lost value. Cryptocurrency investments continue to face significant risks."

Gensler also stated that fraudsters continue to use the increasing popularity of cryptocurrency assets to lure retail investors into scams. These investments continue to be plagued by fraudulent activities - counterfeit token issuances, Ponzi schemes and pyramid schemes, as well as blatant theft where project initiators disappear with investors' money.