As a follow up to my post a couple of weeks ago on the three biggest Bitcoin myths (see https://www.cognizantwealth.com/2017/12/15/the-three-biggest-bitcoin-myths/), the Securities and Exchange Commission (SEC) has just warned investors about one more risk of which they need to be cognizant.

Myth #4: Investing in Bitcoins is safe.

The SEC last week recommended that investors “exercise caution” with cryptocurrencies like Bitcoin.  Many of the promoters of cryptocurrency investments are not following federal and state securities laws.  As a result, state and federal regulators may not be able to help you recoup any lost investments from unscrupulous investment exchanges or custodians.  As they put it, “The SEC and state securities regulators are pursuing violations, but we again caution you that, if you lose money, there is a substantial risk that our efforts will not result in a recovery of your investment.”

Enough said.