The Security and Exchange Commission (SEC) has added new cryptocurrency trading platforms that it calls “deceptive” to its public alert list, including names like “SuperBinance,” “Bittrade Capitals” or “247Crypto Trade. “
New additions to the list of “public alerts “
The US regulator, the Security and Exchange Commission (SEC), has just added new companies it calls “deceptive” to its blacklist, i.e. platforms that are not registered with the authority and therefore operate without a legal framework.
In a press release on Monday, the SEC clarified that its list of “public alerts” is not intended to sanction companies, but only to warn investors that these platforms are not registered with the regulator. Thus, the likelihood of being scammed is much greater. But this list does not mean that these companies have violated US securities laws.
The US regulator launched the list in 2007 with the rise of online investing. It is intended to warn users of any potential scams, deception or fraud. Names of misleading platforms include “SuperBinance”, “BTC Investments” and “Bitpayfxpro”. Names that could be confused with the well-known Binance and FTX platforms.
The latest additions to the list include “Bittrade Capitals”, “247Crypto Trade” and “Bitpayfxpro”. The SEC says they all used misleading information to solicit primarily non-US investors.
The desire to keep the environment healthy
Generally, companies on this list from the US regulator have suffered numerous complaints from users. The SEC has not detailed the reason for these complaints, but one can quickly suspect that users have been deceived.
For example, take the deceptive SuperBinance platform. By its name, it could be mistaken for the well-known Binance platform, thinking that it is an extension of the existing platform.
An average user who does not do the necessary research could easily deposit funds and buy cryptocurrencies on this misleading platform. Unfortunately for him, the platform is not registered and has not undergone the necessary security checks with the US regulator. Thus, he could be defrauded.
The SEC has the prerogative to keep a healthy environment and protect consumers, just like our financial market authority (AMF) in France. As a user, it is relevant to do some research yourself to find out if the platform is registered locally.
