They’re surrounded by scams waiting to happen — and Utahns are especially susceptible to being fleeced, said state Division of Securities Director Keith Woodwell.
“Investors should be extremely wary of promoters who promise high returns through bitcoin arbitrage or trading strategies,” Woodwell said. They also should think twice about being offered a chance to get in on an “initial coin offering (ICO)” in which investors receive new crypto-currencies in exchange for an investment of actual money.
“Utah’s reputation as a technically savvy and connected state makes our population ripe for crypto-currency fraud,” he added. “While it’s a compliment to our population for being plugged into what’s trending, internet hype can lead to rash decisions.