CFTC Warns About Cryptocurrency 'Pump-and-Dump' Scams

The U.S. derivatives regulator warned investors about cryptocurrency “pump-and-dump” scams that aim to rip off investors by inflating the price of volatile virtual tokens through spreading bogus information. The Commodities Futures Trading Commission said in a statement that it had received complaints from investors who had lost money in such schemes, and warned against buying cryptocurrencies based on tips found on social media.