There has been a rise in complaints about cryptocurrencies and assets. The most common problems the agency hears about are straight-up fraud and scam, as well as issues with transactions going through, lost savings, and more.
According to the bulletin, there has been an increase in the number of consumers reaching out for help and providing examples of bad behavior over the last four years. Forty percent of the complaints the agency received were about fraud, 25 percent were about transaction problems, and 16 percent were about money not being available when promised. California had 13 percent, followed by Florida with 8 percent.
Millions of customers have been affected by the practice of exchanges freezing funds. When it is done on purpose, the bureau has received lots of complaints about technical difficulties at exchanges, where not being able to trade could cost users a lot of money.
Most of the information in the document won't surprise those that have been paying attention. The past few years have seen a lot of NFT shenanigans, as well as fake livestreams trying to move people to shady websites. There are many old scam that have been given a new twist, like wire transfer and romance fraud. In the case of the pig butchering scam, a fake romantic interest will pressure someone into giving up money for a supposed investment.
It is, however, a sober reminder of what happened as members of the general public got caught up in the mania that saw the price ofCryptocurrencies reach highs of $68,789.63 and $4,891.70 before they came crashing down. You are looking at a more than 70 percent loss if you bought at their peak. Adding in the NFT-mania, the fall of supposedly stable coins, and what appears to be the collapse of a major exchange, it is no wonder why the CFPB is seeing an.
The government is still watching the fraud that is happening there. The Department of Justice has gone after schemes both big and small in the past year, as well as state and federal governments considering how to regulate cryptocurrencies.
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