The Texas State Securities Board (TSSB) warned on March 23 about coronavirus-related scams, crypto investments that promise high ROI in the midst of the coronavirus crisis.
The most common scheme is when fraudsters, based on penny stock purchases, try to boost prices by sharing “positive” information that turns out to be fake. They create fake news about companies that have allegedly found a cure for COVID-19, trying to “capitalize on fear”.
Texas watchdog considers cryptos as high-risk assets and advised investors to check the Texas Investor Guide 2020. The TSSB warned that crypto is a high-risk investment and requires careful scrutiny. Cryptocurrencies were included in the report as one of the main threats to investors.