Crypto
Cryptos (digital currency that generally exists only electronically) came into the financial world with a lot of lofty claims, but has caused a lot of issues of instability and provided more outlets for scammers.
Key terms
- Cryptocurrency: Digital currency that generally exists only electronically, there is not one but several
- World Liberty Financial: A cryptocurrency platform owned by the Trump family
Executive Order on Crypto
Read the full executive order here: STRENGTHENING AMERICAN LEADERSHIP IN DIGITAL FINANCIAL TECHNOLOGY Jan 23,2025
Promise: “The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our nation’s international leadership. It is therefore the policy of my administration to support the responsible growth and use of digital assets.”
Outcomes:
- Administration has authority to establish a national crypto stockpile
- Prohibits the creation of a “central bank digital currency” overseen by the government
- Crypto companies will get more access to opening bank accounts
Why: Building up the power cyrpto has gives Trump and his oligarchs more power in the takeover of America.
Reality: Cryptocurrency has not be historically backed by any government which means there is very little security in the actual tangible worth of your currency. Additionally the values fluctuate so often that it can’t be compared to the security you get with the dollar. The appeal of privacy that comes with blockchain doesn’t offset the lack of consumer protections and in fact can end up making some of your information public.
Risks:
- Foreign adversaries trying to gain favor
- More scams and rug pulls
Safety in the Crypo World
What Should I Do?
- Avoid “companies” or individuals who demand you pay in crypto
- Don’t trust scammers who guarantee profits or rewards (nothing is assured in this market)
- Don’t mix romance and investment advice, predators take advantage of people looking for human connections to sell their scam
Common Scams in Crypto
- Investment: An account tries to gain your trust to get you to “make money easy” with very little risk
- Impersonators: Scammers will pretend to be from large companies, government agencies, celebrities, or even potential romance partners and use that trust to get you to send them money by buying crypto
- Blackmail: Making threats if the person does not send money in cryptocurrency
Where to Report Scams
- the FTC at ReportFraud.ftc.gov
- The Commodity Futures Trading Commission (CFTC) at CFTC.gov/complaint
- The U.S. Securities and Exchange Commission (SEC) at sec.gov/tcr
- The Internet Crime Complaint Center (IC3) at ic3.gov/Home/FileComplaint
- The cryptocurrency exchange company you used to send the money
Sources:
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