SEC Chairman warns investors of five common types of crypto scams

Gary Gensler, chairman of the U.S. Securities and Exchange Commission, issued an investor alert on the X platform, warning of five ways scammers may lure victims into scams involving crypto-asset securities. The SEC said scammers often use emerging technologies such as cryptocurrencies to commit investment scams. It also detailed the alert, outlining common types of cryptocurrency scams: 1. Promises of high returns with low risk. 2. Unlicensed sellers. 3. False recommendations and endorsements. 4. Manipulative trading strategies. 5. Phishing scams.