Watch Out for Cryptocurrency Scams

Written by:
C Costigan
Published on:

What to do if you are the head of the SEC and companies in the cryptocurrency space appear to be pulling a fast one?

"The SEC has done a great job at pulling out some of these companies," remarked CNBC's Brian Kelly.  "In general, the SEC has stopped trading on a lot of these so they have done a great job, in my opinion, with the regulation.  They've understood that this is a new technology, they want to foster innovation, and at the same time their job is to protect the public."

Riot Blockchain was one such company investigated by Kelly and the CNBC crew.

In addition to an abrupt name change, CNBC pointed out some other potential warning signs related to Riot Blockchain just last week.

A number of red flags in the company's SEC filings also might make investors leery: annual meetings that are postponed at the last minute, insider selling soon after the name change, dilutive issuances on favorable terms to large investors, SEC filings that are often Byzantine and, just this week, evidence that a major shareholder was getting out while everyone else was getting in.

Watch more from CNBC regarding the fears about cryptocurrency scams below

- Aaron Goldstein,

video News

Naked Man Goes on Attack in Casino, Subdued by Police

A naked man on the attack inside a popular casino had to be subdued by police officers.

More Than $30M in Cryptocurrencies Stolen From One of World's Largest Exchanges

Bithumb, an exchange based in South Korea, confirmed Wednesday that some $30 million worth of cryptocurrencies have been stolen from it.

High Stakes Homicide: Investigation Discovery's 'Reasonable Doubt' Profiles Kim Cain Case

High Stakes Homicide: Investigation Discovery's 'Reasonable Doubt' Profiles Kim Cain Case

Pest control worker Kim Cain was convicted of murdering a 71-year-old Palm Beach socialite after she apparently found him stealing her jewelry to support his gambling addiction.

Bet on Where Kawhi Leonard Will Play Next Year

Bet on Where Kawhi Leonard Will Play Next Year

With word that Kawhi Leonard wants out of San Antonio, Dave Mason of BetOnline has posted odds on what team he ends up playing for next year.  The Lakers pay $11.50 for every $10 bet.

NJ Governor Bets $20 on Germany to Win World Cup as Sports Betting Kicks Off

New Jersey's governor kicked off a new era of gambling Thursday in the state that led the charge for the entire nation to bet on sports legally.