How To Spot A Cryptocurrency Scam: Federal Trade Commission to Host Free Workshop

The Federal Trade Commission (FTC) has announced that they will host a free to attend a workshop called "Decrypting Cryptocurrency Scams" in the upcoming summer. This was confirmed by a press release published on April 30, 2018. Their goal is to raise awareness about potential fraud in the crypto community so that people can see the warning signs of a scam before they have invested any of their savings into an unstable cryptocurrency market.

The "Decrypting Cryptocurrency Scams" event is organized by people from sectors including consumer groups, blockchain researchers, law enforcement, and private companies to investigate the methods scammers use to exploit the ever-growing public interest in digital currencies. Since Bitcoin's successful launch, scammers are finding ways to steal coins from unsecured Bitcoin or Ethereum wallets by retrieving account information from unsuspecting consumers.

The FTC's notes have reported an increase in cryptocurrency exchanges this year. But that means the number of fake blockchains and pyramid schemes tied to digital coins is also on the rise. On top of that, the regulatory agency has exposed several instances of deceptive or misleading business opportunities and falsely advertised schemes disguised as legitimate mining machines.

The workshop will take place on June 25, at the DePaul University in Chicago, IL. The webcast should be up by then as well. The workshop is intended to be a part of the FTC's crackdown on common scams that put consumer protection at risk. It addresses the effectiveness of new financial technologies in identifying fake blockchains. The FTC's Blockchain Working Group even managed to file lawsuits against individuals involved in fraudulent chain referrals.

The group was established to assist in coordinating enforcement actions while providing expertise on blockchain technology via resource sharing. At the same time, the Securities and Exchange Commission (SEC) has released a probe into the cryptocurrency market to decide whether the Initial Coin Offerings (ICOs) can be regulated under the same laws as the public offerings. Either way, the US security agency is making attempts to pass legislation to control the means of cryptocurrency capitalization.