Cryptocurrency fraud may increase despite enforcement push, regulators say

17 October 2018 7:23am
Federal and state regulators expect cryptocurrency fraud to persist and possibly increase despite a plunge in Bitcoin prices and a step-up in enforcement efforts.

“Any time there’s a new and hot thing, fraudsters gravitate toward it,” US Securities and Exchange Commission Chairman Jay Clayton said at a conference* last week. “As long as it remains something where people think they can do very well very quickly, and it remains unregulated, it’s fertile ground for fraud.”

James McDonald, the top enforcement official at the US Commodity Futures Trading Commission, said in an interview: “I don’t think you’re likely to see a decrease in this area; rather, you’re going to see a continued ramp-up in anti-fraud enforcement actions.”