The problem of investment fraud continues to surge. The Federal Trade Commission (FTC) reports that people have lost over $1 billion in cryptocurrency scams since 2021 — often via made-up “investment opportunities” or investment into use- and worthless shares. But investment scams have changed, especially as hedge funds and cryptocurrency exchanges explore new investment vehicles. For example, Virgil Sigma Fund LP and VQR Multistrategy Fund LP advertised arbitrage opportunities in crypto markets that embezzled over $54 million or SmartTradeCoin`s ICO scammed assumed over $200 million.
Investment fraud can leave your future in tatters. Whether you were saving a nest egg for retirement or inheritances for your children, the loss of your hard-earned funds can cause significant harm to your credit accounts, financial prospects, and emotional well-being.
The best defense against investment scams is doing proper due diligence on any potential investment before you get involved.