Guard Your Investments: SEC Issues Warning on 'Memecoin' Fraud and Pump-and-Dump Schemes
CryptoNewsTerminal Staff01 Jun, 2024
Guard Your Investments: SEC Issues Warning on 'Memecoin' Fraud and Pump-and-Dump Schemes
The Securities and Exchange Commission (SEC) recently issued a warning to investors regarding fraudulent practices involving memecoins and other digital assets. Scammers often use social media, text messages, and even AI-generated content to gain trust and promote their schemes. Pump-and-dump schemes are a common tactic, where fraudsters manipulate the price of an asset, typically a memecoin, before selling their holdings for profit. The SEC advises investors to be wary of unsolicited investment offers and requests for additional fees or payments beyond the initial investment. Stay vigilant and conduct thorough research before making any investment decisions. Remember, if an investment opportunity sounds too good to be true, it likely is.
