Eleven cryptocurrency companies are being targeted by California’s financial regulator, who claims they stole consumer money or ran Ponzi schemes. The DFPI released a press release on Tuesday announcing the most recent enforcement proceedings.
Elevate Pass LLC, Metafi Yielders, and nine other cryptocurrency businesses are the targets of cease-and-desist orders from the DFPI. They claim that these businesses were misusing client money or breaking state securities laws.
The regulator claims in a press statement that “each of the 11 entities allegedly offered and sold unqualified securities and ten of them also made material misrepresentations and omissions to investors.” As in a Ponzi scheme, “the entities are all alleged to have used investor funds to pay purported profits to other investors.”
None of the organizations that California’s regulator targeted have yet provided feedback on the cease-and-desist orders.
A lawsuit against cryptocurrency lender Nexo was recently filed by California authorities 24 hours ago. They claim that their Earn product broke the law regarding securities. As a result, this continues the state’s pattern of closely scrutinizing crypto firms.
According to DFPI Commissioner Clothilde Hewlett, “The DFPI will continue to safeguard California consumers and investors against digital currency scams and frauds.” These steps “not only safeguard consumers but also guarantee that California will continue to be the leading worldwide hub for ethical crypto asset startups and growth.”
Instagram crypto scams: a terrifying reality
Instagram cryptocurrency scams are currently all the rage. These offer free tokens or exclusive insider information on how to profit quickly from Bitcoin or another altcoin. Some of these are more convincing than others, even if many of them are merely ridiculous attempts to obtain your personal information in order to steal your identity and data. However, the Bitcoin giveaway fraud sticks out. The idea is straightforward: If you send an account a modest amount as a fee to claim the supposedly “free” cryptocurrency, they will guarantee to deliver you a particular quantity of Bitcoin.
Scammers frequently utilize stolen images to give their accounts a trustworthy appearance. Unfortunately, scammers have started creating phony identities on Instagram to deceive users into falling for their tricks, despite the fact that the majority of trustworthy exchanges and wallets don’t have a presence there.
Sadly, there is no foolproof method to stop scams on Instagram. However, there are a few things you can do to improve your odds of staying out of trouble. First and foremost, make careful to confirm the validity of any posted information.