The cryptocurrency industry is rich in investment opportunity but also ripe for fraud schemes. The recent implosion of FTX Trading, Ltd. leaves investors and their advisers wondering whether any crypto investment is safe. There have been dozens of cryptocurrency-related fraud schemes in recent years including Ponzi schemes where investors thought they were investing in cryptocurrency to earn a high rate of return on their investment as well as investment schemes using crypto and the blockchain to facilitate the fraud scheme.

Fraudsters have capitalized on the popularity of cryptocurrency and pitch an investment opportunity with significant growth potential. Typically, unusually high growth potential is a red flag for investors, yet it may not seem unusual in a cryptocurrency investment given the historical volatility.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]