Investors should beware of crypto returns that seem ‘too good to be true,’ U.S. SEC chair says

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Cryptocurrencies are in free fall. One of the world’s largest crypto exchanges is cutting nearly a fifth of its work force. And a major crypto lender is halting all withdrawals and transactions for its customers.

U.S. Securities and Exchange Commission chair Gary Gensler said on Tuesday that investors should beware promised returns from crypto lending platforms and products that seem “too good to be true.”

“We’ve seen again that lending platforms are operating a little like banks. They’re saying to investors ‘Give us your crypto. We’ll give you a big return 7 per cent or 4.5 per cent return.’ How does somebody offer [such large percentage of returns] in the market today and not give a lot of disclosure?” Mr. Gensler said during an industry event.New Jersey-based Celsius, which has around US$11.

Companies exposed to cryptocurrencies have previously warned that declines in token prices could have ripple effects, including by triggering margin calls.

 

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Can the Bank of Canada possibly get inflation back down? No. Leadership non-existent, politicians overwhelmingly incompetent, cognitively, morally failed, corrupt, country out of control, people entitled living at expense of other taxpayer national citizens lost lives for.

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