They offer no recourse: Cryptocurrency and many crypto-related investments are subject to little regulatory oversight, and there may be no recourse should the cryptocurrency disappear because of fraud or a cybersecurity breach.

They are untraceable: Cryptocurrency or crypto-related investments only exist on the internet. Issuers can be located anywhere in the world, so it may be impossible to trace and recover lost funds.

Pieciak said that while not every cryptocurrency-related investment offer is a fraud, it is important for individuals and firms selling these products to understand that state laws and regulations may apply to these sales.

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