Attorney General Todd Rokita warns Hoosiers to be aware of cryptocurrency scams 

With the rise of cryptocurrency and other digital assets, Attorney General Todd Rokita wants Indiana consumers to be on the lookout for risky or predatory practices related to the often-misunderstood topic.

“New technologies spark the interest of many people, and Hoosiers are no exception. Indiana consumers may be familiar with cryptocurrencies or may want to learn more about them,” Attorney General Rokita said. “However, digital assets are increasingly being used by well-versed perpetrators looking to scam you out of hard-earned money.”

Cryptocurrency is one form of digital asset and is created by companies or individuals, usually taking the form of a virtual coin or token. Digital assets are intangible and generally exist only electronically. Billions of dollars of value are currently invested in cryptocurrencies around the world, with thousands of cryptocurrencies available and more being created all the time.

Most consumers purchase cryptocurrency through an online exchange platform. These assets are stored in digital wallets, which could be online in an exchange, on your computer, or on an external hard drive. But because they are intangible, if something goes wrong with your platform, your hard drive, or your computer, it is likely that you will not be able to recover your funds.

Hoosiers should be aware that the value of cryptocurrency is extremely volatile.

The Securities Division of the Indiana Secretary of State has played an active role in investigating fraud cases related to cryptocurrency and protecting Indiana investors.

“Many of the new cryptocurrency markets operate in uncharted territory when it comes to regulation,” said Indiana Secretary of State Holli Sullivan. “Scammers have moved in quickly to take advantage of people’s interest to invest. I encourage all Hoosiers to thoroughly vet any offerings related to cryptocurrency before placing their money in potentially volatile markets.”

Scammers are using a variety of methods to exploit the novelty of cryptocurrencies as more consumers are using this asset.  Here are a few warning signs for scams related to cryptocurrencies: