The SEC adds misleading crypto platforms to its list of public warnings

New additions to the list of “public warnings”

The U.S. regulator Security and Exchange Commission (SEC), just added new companies, it calls “misleading” to its blacklistthat is, platforms that are not registered with the authority and therefore operate without a legal framework.

In a press release on Monday, the SEC clarified that its list of “public warnings” is not intended to sanction companies, but only to warn investors that these platforms are not registered with the regulatory authority. Thus, the probability of being cheated is much greater. But this list does not mean that these companies have violated U.S. securities laws.

The US regulator launched this list in 2007 with the rise in online investment. It aims to warn users of any risk of fraud, deception or fraud. Among the names of misleading platforms are ” Super Binance »,« BTC investments or even “Bitpayfxpro”. names that could lead to confusion with the famous Binance and FTX platforms.

The latest additions to the list include the platforms “Bittrade Capitals”, “247Crypto Trade” and “Bitpayfxpro”. The SEC says they all used misleading information to primarily solicit non-US investors.

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The desire to maintain a healthy environment

In general, the companies that end up on this list of the US government have been the subject of many complaints from users. The SEC has not elaborated on the cause of these complaints, but one can quickly suspect that users have been deceived.

Take, for example, the misleading platform SuperBinance. If we stick to its name, it can be confused with the famous Binance platform thinking that it is an extension of the existing platform.

An average user who does not do the necessary research can deposit their money and buy cryptocurrency on this deceptive platform. Unfortunately for him, since the platform is not registered, it has not undergone the necessary security checks with the US regulator. Thereby, he could be cheated.

The SEC has the privilege of maintaining a healthy environment and protecting consumers, as does our Financial Markets Authority (AMF) in France. As a user, it is relevant to conduct research yourself to find out if the platform is registered locally.

👉 Related – SEC denies Bitcoin (BTC) ETF approval again

Source: SEC

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About the author: Timothy Bernines

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I am passionate about the investment world and cryptocurrencies have attracted my attention for a few years now. Since I have a great interest in the areas of new technologies and Web 3, that’s why I would naturally like to write articles about Cryptoast, in order to contribute to the democratization of this universe in society.
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