High-Yield Crypto Accounts Put Investors at Risk
Digital currency lending platforms are luring savers with advertised interest rates of 9% or more. But customers too often fail to read the fine print.
High risk for high yield.
Photographer: : Gabby Jones/Bloomberg
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U.S. Securities and Exchange Commission Chairman Gary Gensler has repeatedly said the crypto markets are like the “Wild West,” with insufficient protections for investors. A presidential working group has cautioned that some crypto platforms were allowing investors to make risky high-leverage bets. And the Treasury Department has called for legislation requiring some crypto issuers to be insured just as banks are.
Their warnings are much needed. The trouble is, few people seem to be paying attention.