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US FINRA Highlights Crypto in Annual Report

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The United States financial industry watchdog cautions individuals to exercise caution before entering cryptocurrency, citing the ongoing presence of malicious scammers.

“Member firms seeking to engage in crypto asset-related activity should identify and address the relevant regulatory and compliance challenges and risks,” the report stated.

FINRA Declares Crypto is Exposed to ‘Manipulative Schemes’

The Financial Industry Regulatory Authority (FINRA) has released its 2024 annual report outlining its comments on different sectors of the reporting requirements for the regulator. This includes financial crime, firm operations, communication and sales, market integrity and financial management.

However this year, FINRA also includes crypto asset developments.

The report highlights the ongoing involvement of malicious hackers and scammers in the space. Additionally, explaining that they will exploit low market-cap assets to deceive investors.

“Bad actors are taking advantage of investor interest in crypto assets and blockchain technology by engaging in manipulative schemes similar to those that exist in the equities market, including those that are commonly associated with low-priced securities.”

Furthermore, the exchange highlighted that the differences in centralised and decentralized exchanges may result in an advantage to bad actors too.

“Additional forms of market abuse involving crypto assets may result from differences in their market structure,” the report highlighted.

Alarming Annual Volume of Crypto Theft

Web3 anti-scam platform Scam Sniffer has revealed the alarming volume of cryptocurrency pilfered in 2023. This was due to increasingly sophisticated phishing scams.

“In the past year, Scam Sniffer has monitored these Wallet Drainers stealing nearly 295 million US dollars in assets from about 324,000 victims,” the report stated.

However, while hacking attacks have a widespread impact, the community usually responds quickly, usually within 10-50 minutes. 

Meanwhile, Scam Sniffer notes that airdrops, organic traffic, paid advertising, and hijacked Discord links are not as easily detected.


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Harry is a crypto enthusiast and experienced trader with a track record of success. With a deep understanding of blockchain technology, he has analyzed market trends and identified profitable opportunities, resulting in impressive returns. Harry 's expertise lies in developing effective trading strategies that leverage the potential of cryptocurrencies. Through his articles, guides, and educational resources, he shares his insights and knowledge, helping individuals make informed trading decisions. With a keen eye for market patterns, Harry has navigated the volatile crypto landscape with confidence. Stay tuned for valuable perspectives and expert advice from Harry as he contributes to the Ailtra platform.
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