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Bitcoin Triggers SEC Investor Alert

Protecting stockholders from the investment risks of Bitcoin and other virtual currencies, the U.S. Securities and Exchange Commission’s (“SEC”) Office of Investor Education and Advocacy has released Bitcoin and Other Virtual Currency-Related Investments. Since Bitcoin, as well as other virtual currencies, can be exchanged and used like real money for purchases, the SEC’s Investor Alert warns of the possibility of increased fraudulent activities and high-risk investments. Per the Investor Alert, risks include:

  • Bitcoin investments not being insured from loss like other investments;
  • Bitcoin’s exchange rates are generally unstable and could drop drastically;
  • Federal, state or foreign governments may limit Bitcoin usage; and
  • Due to fraud, hackers or malware, exchanges of Bitcoin may stop or end permanently.

For the SEC’s Investor Alert, click here.

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