Another type of investment scam involves the use of fake celebrity endorsements. Scammers take real photos and impose them on fake accounts, advertisements, or items to make it look like the celebrity is promoting a big financial gain with the investment. The sources of these claims appear to be legitimate and use reputable company names, such as ABC or CBS, with a professional-looking website and logos. The exchange said it hasn't been harmed by cryptocurrency companies seeking protection against bankruptcy.
Australian consumer group CHOICE described its regulatory framework on cryptocurrencies in a presentation to the country's Treasury, in which it called on the new federal government to prioritize cryptocurrencies in its financial services reforms. Detecting violations in the crypto space could, in theory, be possible since cryptotransactions are publicly listed in blockchain transactions. Financial experts advise most passive investors to keep their cryptocurrency assets below 5% of their portfolios and to never invest in cryptocurrency at the cost of saving for emergencies or paying off high-interest debts. This practice, known as a “pull the rug”, has become especially common as DeFi protocols have become popular among crypto investors interested in increasing returns by searching for cryptographic instruments that generate returns.
And while major cryptocurrency exchanges have better anti-fraud security measures than lesser-known exchanges, there is still no guarantee that investors will recover stolen cryptocurrencies.