California Launches Online Platform to Tackle Crypto Scams

The website offers crypto educational materials and info on new scam tactics. 

The California Attorney General’s Office has launched a new website to tackle growing cryptocurrency-related scams. According to a recent report, the platform will provide the general public with relevant information about cryptocurrency-related risks and scams.

Commenting on the initiative, Rob Bonta, California Attorney General, said it became necessary to launch a website to combat cryptocurrency scams given the growing interest in digital currencies.

“From celebrities to your next-door neighbor, it seems like everyone these days is investing in cryptocurrency based on the promise of fast and easy money,” Bonta said.

He urged Californians not to fall prey to crypto “fantasy” while indicating that cryptocurrencies carry significant risks like every other investment.

“There’s no guarantee that you’ll see large – or any – returns,” he added.

Need for Due Diligence

According to Bonta, anyone willing to join the crypto bandwagon must conduct adequate research. The newly launched crypto website offers cryptocurrency educational materials, especially tips on how California residents can buy, trade, and sell cryptos and non-fungible tokens (NFTs).

Bonta warned Californians to always be on the lookout for potential scams. Furthermore, the website will be updated with the latest crypto scams to give the public an idea of the new scam tactics being used by bad actors. The California Attorney General’s office highlighted six possible crypto scams people should look out for when purchasing digital currencies. They include:

  • A promise of a high ROI in exchange for money or crypto.
  • New crypto assets share similar names to existing prominent ones.
  • Companies that mandate you to make payments in crypto.
  • Celebrity endorsements.
  • Unsolicited phone calls and emails.
  • Crypto investments that require upfront payments.

Crypto Scams Spike in California 

It is noteworthy that the move comes following a spike in cryptocurrency-related scams in the state. The California Department of Financial Protection and Innovation (DFPI) has consistently warned the public about fraudulent crypto schemes targeting California investors. In June, DFPI issued a similar warning to investors regarding crypto scam tactics on Instagram. With the spike in crypto-related scams, authorities saw the need to launch a website to tackle these illicit activities.

California Issues Crypto Executive Order

Meanwhile, California is poised to regulate the state’s crypto space to better safeguard investors. California governor Gavin Newsom issued an executive order in May for the state’s crypto space to establish a roadmap for consumer protection and regulation while creating ways for the state to benefit from the emerging industry.

The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of TheCryptoArea. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.