The Commission on trade in commodity futures declares “war” crypto pump group

The Commission on trade in commodity futures declares “war” crypto pump group

Trade Commission commodity futures U.S. (CFTC) published a special document, which warns customers about a fraudulent scheme to pump and dump (pump and dump).

Director of public Affairs CFTC Erica Elliott Richardson commented on this document:

Like many other online fraud this type of fraud is not new. The scheme used on the wave of interest in the cryptocurrency. Pump scheme appeared long before the emergence of the Internet. Even experienced investors may become targets for professional fraudsters who are experts in the creation and dissemination of seemingly credible information to defraud investors. The CFTC urges all clients to carefully study the investments, and avoid investment opportunities that they did not fully understand.

Pump schemes consist mainly of anonymous participants, which are combined in groups in social networks or messengers. They coordinate efforts to create a false demand (pump), then quickly sell bitcoin at the peak prices. This type of manipulation is possible on the cryptocurrency market which is not regulated. This most often happens on the stock exchanges where Lisitsa a lot of coins and has a large enough user base.

Read also – How to avoid becoming a victim of the pampas? (for example, crypto-currencies E-coin)

Customers should avoid buying the virtual currency of tokens based on the tips distributed in social networks. Organizers of the scheme can always call for immediate buying, and the victims usually fear to miss investment opportunity, do not check the information. Often the whole process takes only a few minutes, so not even all the members of the pump group have to sell the cryptocurrency. The only one who no doubt make for such schemes, the administrators of such groups that you know in advance what coin will panitsa.

Complaints to the CFTC and the call for cooperation

The CFTC argues that it has already received several complaints from investors who were victims of pump schemes. We also invite anyone who has information that can help uncover the activities of such groups, bringing to them the organizers will apply monetary sanctions in the amount of $ 1 million, to share this information on the website whistleblower.gov fee from 10% to 30% of the amount of the fine.

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