Crypto Investors Get Greetings From Former SEC Officials: You Are 100 Percent Alone!

Former SEC official John Reed Stark warned crypto investors. (Photo; Doc. JohnReedStark.com)

JAKARTA John Reed Stark is the former head of enforcement of the US Securities and Exchange Commission (SEC) who served as head of the SEC Internet Law Enforcement Office for 11 years. Recently, he gave a stern warning to the crypto industry.

According to him, the regulatory aggressive attack on the crypto industry has just begun. The warning comes after several law enforcement measures carried out by the SEC against major crypto companies.

Stark stated in a tweet that the SEC "Bank Blockfi for failing to register a crypto lending program, discontinued Coinbase from launching a crypto lending program, and recently beat Gemini/Genesis for its Earn crypto lending grrift".

As reported by Bitcoin.com News, Stark also added that this SEC enforcement act was just the beginning of a much larger regulatory crackdown on the crypto industry.

Last week, the SEC accused Gemini crypto exchange and Genesis crypto lender "for offering and selling unregistered securities to retail investors through Gemini Earn's crypto asset lending program". This action demonstrates the SEC's determination to protect retail investors from unregistered and potentially fraudulent crypto investments. In February last year, regulators also took action against crypto lending platform Blockfi, which filed bankruptcy in November.

Furthermore, in September 2021, the SEC threatened to sue Coinbase if the Nasdaq-listed crypto exchange proceeds to launch a lending program. Coinbase then ruled out its plans, highlighting the SEC's power and determination to regulate the crypto industry. Stark is a crypto skeptic, he is quite vocal and regularly comments on social media about the dangers of investing in cryptocurrencies.

"In crypto-land, Ponzi's game of scheme continues and death-spiral may have started now," he said last November. He also stressed that crypto does not have "no FDIC insurance, no SEC inspection team, no regulatory oversight, no license, and no consumer protection." He has warned that with crypto investment: "You are 100 percent alone."

Citing Bitcoin.com News, Stark also stated that CNBC Mad Money host Jim Cramer has warned about the SEC making a "massive sweep" in the crypto industry. He has urged investors to leave crypto now, given the potential risks and lack of regulatory oversight in the industry.

In conclusion, recent law enforcement actions taken by the SEC against major crypto companies, and warnings from Stark, demonstrate regulatory determination to protect retail investors and bring greater regulatory surveillance to the crypto industry.

It is important for investors to consider potential risks and lack of regulatory oversight before investing in cryptocurrencies. With crypto investments, as Stark warned, "You are 100 percent alone."