SEC Warns Public Companies Are Using ICOs to Pump Stocks

The US Securities and Exchange Commission is warning investors about the risk of public stock scams that use cryptocurrencies as a promotional tactic. Published yesterday, the SEC investor alert primarily focuses on cryptocurrency-themed promotions from publicly traded companies. The SEC said in its alert:

"Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. These frauds include 'pump-and-dump' and market manipulation schemes involving publicly traded companies that claim to provide exposure to these new technologies."