In the United States alone, the Securities and Exchange Commission (SEC) and other regulators are investigating the cryptocurrency market. The SEC’s inquiry is focused on initial coin offerings (ICOs).
In recent months, the SEC already filed fraud charges or suspended the business activities of companies involved in trading bitcoin, blockchain technology, and ICOs.
Some of these companies include Bitfunder, Munchie, AriseBank, Cherubim Interests (CHIT), PDX Partners (PDXP), and Victura Construction Group (VICT).
Tech companies ban cryptocurrency ads
Meanwhile, tech companies including Facebook, Google, and Twitter decided to ban cryptocurrency advertisements. The reports regarding the increasing number of companies engaged in cryptocurrency scams prompted the tech companies’ ban.
The tech companies’ decision contributed to the negative performance of bitcoin in the first quarter of 2018.
In February, Augustin Cartens, general manager of Bank for International Settlements (BIS) said bitcoin is combination of a “bubble” and a “Ponzi scheme.”
