In an Investor Bulletin entitled “Initial Coin Offerings” the United States Securities and Exchange Commission warned investors about the pitfalls of ICO’s (Initial Coin Offerings) also known as token sales to raise capital. The bulletin cautions investors to be wary of promises of higher returns which can be used to improperly induce investors to part with their hard-earned money.
The use of blockchain and electronic distributed ledger computerized encryption is being used in the financial and investment arena more and more (i.e. Bitcoin), although the average investor is not fully apprised of all the risks with investing in these new technologies and emerging investment opportunities. Further, emerging vendors and marketers of these coin offerings are oftentimes beyond the reach of American criminal and regulatory authorities. Is this really a safe place to put your money?
We offer a free initial consultation to investors who have been victimized in the financial markets. For a free initial consultation contact the Law Offices of Timothy J. O’Connor at (518) 426-7700.