By Patricia Uceda, Fall 2014 Graduate Research Assistant
The SEC has sanctioned a computer programmer that was allegedly illegally operating online trading exchanges for securities based on virtual currencies such as Bitcoin without registering the venues. The programmer was also sanctioned for conducting unregistered offerings. Continue reading
The Investor Advocacy Clinic has previously written about digital currencies to ensure that you are an informed investor. Last fall, James Gallagher gave an overview of Bitcoin and outlined some of the risks here. We also let you know about FINRA’s recent alert concerning Bitcoin, which is available here. The North American Securities Administrators Association (NASAA) issued an informed investor alert yesterday that provides additional information on digital currency.
If you are thinking of adding digital currencies to your portfolio, be sure to do your homework. Check out all of these sources of information before you invest.