It’s no secret that crypto scams have been skyrocketing. In 2023, the FBI reported a 45% increase in losses, which totaled over $5.6 billion, according to crypto.news. These scams, especially fake investment schemes, are becoming more common and often target people through social media or dating apps. This has caused regulators like the SEC to crack down harder and issue billions in fines to companies involved in fraud.
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Indeed, in one major case, five U.S. states settled with Josip Heit and GSB Group over a $1 billion cryptocurrency scam. The scheme promised investments in the metaverse and a gold-backed token but ended up failing. Nevertheless, the settlement will ensure that affected investors will get their money back, showing how regulators, including the SEC, are stepping up to deal with these scams.
It’s worth noting that the SEC’s aggressive approach has hit crypto firms with heavy penalties totaling over $7.42 billion since 2013, according to a report from Social Capital Markets. Interestingly, a huge chunk of that ($4.68 billion worth) has come in 2024. However, this has made SEC chair Gary Gensler quite unpopular among the crypto community, which has led to a rise in popularity for Donald Trump among crypto enthusiasts. In fact, Trump previously stated that all Bitcoin mining should be done in the U.S. and promised to “keep Elizabeth Warren and her goons away” from Bitcoin (BTC-USD).
Is Bitcoin a Good Investment?
Putting aside crypto scams, those who are interested in buying crypto might be wondering if Bitcoin is a good investment. Using TipRanks’ technical analysis tool, the indicators seem to point to a negative outlook for Bitcoin in the short term. Indeed, the summary section pictured below shows that six indicators are Bullish, compared to two Neutral and 14 Bearish indicators.
