US COMMODITY FUTURES TRADING COMMISSION ISSUES FIRST CUSTOMER ADVISORY ON VIRTUAL CURRENCY “PUMP-AND-DUMP” SCHEMES

On 28th February, Shearman & Sterling published an article which said that the CFTC in the US has issued its first customer advisory regarding pump-and-dump schemes in virtual currency markets.  The CFTC warned customers to exercise extreme caution when investing in virtual currency listings promoted on social media, reportedly backed by famous high-tech business leaders and investors or accompanied by posts creating false urgency or telling investors to purchase right away.  CFTC stated it has received multiple complaints from customers who have suffered losses due to virtual currency pump-and-dump schemes; and warned that virtual currencies should only be purchased after they have been thoroughly researched and that customers should avoid purchasing virtual currencies based on sudden price spikes.

https://www.jdsupra.com/legalnews/us-commodity-futures-trading-commission-15939/

See the CFTC news release at –

http://www.cftc.gov/PressRoom/PressReleases/pr7697-18

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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