Greg's Corner

Texas cryptocurrency scam creeps up on craigslist

Supreme Court Justice Ruth Bader Ginsburg

For years it’s been debated whether or not cryptocurrencies such as Bitcoin are a worthwhile investment. Whether it’s due to the massive amount of power consumption needed to mine for cryptocurrency, its volatility in the current market, or its reputation for being the currency of choice in the trading of illegal goods on the internet, cryptocurrency has a less than stellar reputation among many investors. Now, the lure of easy money in the crypto market is being used to potentially scam investors out of their actual money.

The Texas State Securities Board recently ordered a cease and desist order against a company called LeadInvest who claim to develop trading software for cryptocurrency. The reason for the C&D is because the company is allegedly misrepresenting itself by falsely claiming a number of famous people are on its management team like Supreme Court Justice Ruth Bader Ginsburg, among others.

One of the reasons the state of Texas became involved was because LeadInvest was said to have flooded craigslist with ads for their services targeting residents of the Lone Star State. If you see a cryptocurrency ad on a less than reliable website like craigslist, think of it like those ads on daytime TV trying to sell you physical coins as an investment option. They’re usually not telling you something that’s in the fine print that shows you how worthless the investment really is. Even under normal circumstances, cryptocurrencies are a highly risky venture. If you decide to risk money on such an investment, always be aware of the inherent risks involved and never invest money you can’t afford to lose.