CFTC Announces Partnership to Combat Increased Crypto Scams

The Commodity Futures Trading Commission (CFTC) announced partnerships with federal and private groups to educate users on popular crypto scams. The programs will see users enlightened on the growing number of “pig butchering” scams and other forms of fake investment concepts. Regulators continue to tighten the markets against rising crypto scams by bad actors. 

CFTC Discloses Partnership Against Crypto Scams 

The CFTC has tapped two groups in a partnership billed to educate users against cryptocurrency scams. In a recent release, the Commission’s Office of Customer Outreach and Education (OCOE) partnered with the American Bankers Association Foundation and the United States Securities and Exchange Commission’s Office of Investor Education and Advocacy. 

Digital asset-based relationship investment scams are the core of this move as regulators seek ways to curb the growing menace. Melanie Devoe the OCOE Director explained that these scams cost Americans billions annually and investor education plays a key role in preventing an occurrence. 

“Partnering with federal and state regulators as well as consumer protection groups and other organizations helps spread the CFTC’s customer education message and hopefully reaches people before they can get scammed. These partnerships focus on a relationship confidence fraud the perpetrators commonly refer to as ‘pig butchering,’ that is estimated to cost Americans billions each year.”

The United States and global authorities have increased the tempo of regulating the market amid growing scams and non-compliance. The CFTC and the SEC have filed several lawsuits against crypto firms for a breach of rules. Recently, the FBI warned against threats of North Korean hackers against Bitcoin ETF issuers. 

Both Parties To Play Diverse Roles 

Per the release, the American Bankers Association Foundation will circulate an infographic to help investors and users spot potential pig butchering scams. It shows the operational practices of bad actors including how they target and groom victims. On the other hand, the SEC’s Office for Investor Advocacy and other regulatory agencies will distribute investor alerts on pig butchering.

“It targets individuals who think they would never fall for this type of scam by giving them an introspective on how these fraudsters have perfected their criminal craft to entice even the savviest investors. One way all investors can protect themselves is to stop the scam before it starts by not responding to unexpected or unsolicited text messages from unknown senders.”