Alabama securities commission bitcoin stocks
Israel is considering a ban on trading bitcoin, and the South Korean government in December sent valuations tumbling by announcing it was considering shuttering at least some exchanges. There are more than a thousand. FINRA also issued an investor alert about scam pump-and-dump stock schemes involving cryptocurrency.
The Securities and Exchange Commission issued its own investor alert. But when has a rapidly rising investment where seemingly everyone was making money ever gone wrong? Consumer Fraud Protection Bureau: Chase Squires Transamerica May 25, Ryan Besch Transamerica May 15, Chase Squires Transamerica May 02, Should you be paying attention?
Government officials and bankers around the world have voiced concerns about cryptocurrencies. Fraudsters and promoters may solicit investors through forums and online sites frequented by members of the Bitcoin community.
If fraud or theft results in you or your investment losing bitcoins, you may have limited recovery options. Third-party wallet services, payment processors and Bitcoin exchanges that play important roles in the use of bitcoins may be unregulated or operating unlawfully. Law enforcement officials may face particular challenges when investigating the illicit use of virtual currency.
Such challenges may impact SEC investigations involving Bitcoin:. Before making any investment, carefully read any materials you are given and verify the truth of every statement you are told about the investment.
For more information about how to research an investment, read our publication Ask Questions. Ponzi Schemes Using Virtual Currencies. Social Media and Investing — Avoiding Fraud. Private Oil and Gas Offerings. More Than a Bit Risky. Report a problem concerning your investments or report possible securities fraud to the SEC. Securities and Exchange Commission. Investor Alerts and Bulletins. IRS treats Bitcoin as property. The IRS recently issued guidance stating that it will treat virtual currencies, such as Bitcoin, as property for federal tax purposes.
As a result, general tax principles that apply to property transactions apply to transactions using virtual currency. Instead, the defendant allegedly used bitcoins from new investors to pay existing investors and to pay his personal expenses.
Bitcoins for oil and gas. The company advertised working interests in wells in West Texas, both at a recent Bitcoin conference and through social media and a web page, according to the emergency order. Recent Bitcoin exchange failure.