The Vermont Department of Financial Regulation (DFR) has issued a warning to residents in the State about the increasing prevalence of cryptocurrency fraud on social media platforms.
In a recently released report, the agency highlighted the urgent for caution while using social media and shared the unfortunate experience of a victim named Lantsman.
According to an NPR Report, Lantsman’s experience began when he stumbled upon an article on the internet posted by a company called SpireBit, claiming to be an “international financial broker” offering cryptocurrency investment support. Intrigued by the enticing prospects, Lantsman created an account and soon received a message via Telegram.
Lantsman invested an initial $500. As he observed apparent earnings accumulating in his account, he was encouraged to invest more substantial sums. Tragically, after several months, he realized that the earnings were nothing more than an elaborate illusion. In the end, Lantsman suffered a staggering loss of approximately $340,000.
The DFR report explained that cryptocurrencies significantly differ from traditional banking, securities, or insurance investment products. These digital assets lack a lender of last resort, offer limited financial disclosures, and typically do not provide insurance coverage for losses resulting from market changes, theft, or fraud. Critical safeguards found in traditional financial systems are often absent in cryptocurrency investments and transactions.
The agency advised investors to exercise utmost caution when considering or using cryptocurrencies as an investment vehicle. They noted that the absence of government regulation in the cryptocurrency realm, although appealing to some enthusiasts, is one of the primary contributing factors to the heightened risks associated with these investments.
The DFR emphasizes that anyone falling victim to a Bitcoin scam in Vermont must inform the relevant Vermont authorities without delay. They noted that prompt reporting of cryptocurrency fraud to law enforcement authorities would protect potential future victims and improve the chances of recovery of their funds.
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