New monetary instruments such as Bitcoins and other cryptocurrencies are attracting investors. However, they are also fertile ground for frauds or scams.
What are cryptocurrencies?
Cryptocurrency is digital money. There is no physical thing representing it. It is mostly used to avoid banks and regulatory agencies. Cryptocurrencies do not have the same protection as the US dollar.
Examples of cryptocurrencies are Bitcoins, Etherum, Litecoin, and others.
In addition, these new instruments can be very volatile.
Cryptocurrency Fraud
Our firm has been getting phone calls about cryptocurrency scams.
A person from the United Kingdom called us seeking help. The person invested in cryptocurrency from a company created in Estonia, and whose principal lives in Arizona.
Yes. Red flags.
Actually, the cryptocurrency company’s owner lives within 2 miles of our mailing address.
Unfortunately, the person in the UK invested $20,000 dollars in cryptocurrencies and only got $10,000 dollars in return before his Arizona contact stopped answering his calls.
If you are not fully knowledgeable of the cryptocurrency market, do not invest.
Indeed, If a company is promising higher returns than the banks and mutual funds, be wary.
Investing Safely
In general, we suggest putting your savings in solid, reputable companies regulated by the government such as mutual funds. Even in the best of circumstances, nobody can assure you a certain return on your investment.
If you are not fully knowledgeable of the cryptocurrency market, do not invest.
Some Good Use
Now, cryptocurrencies have real value in some cases. For example, in countries where economies have collapsed such as Venezuela and Argentina, individuals use cryptocurrencies as money.
Consult with Attorney Marcos E. Garciaacosta if you have questions about this or any business topic.
About Attorney Marcos
Marcos E. Garciaacosta is a trademark and business attorney working for local, national, and international clients. Request a 15 minutes free consultation by phone at (480) 324-6378 or send us a message through our contact form.