For the Tomahawk Leader

MADISON – The Wisconsin Department of Financial Institutions (DFI) and the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) this week cautioned consumers to watch out for scammers and thieves when investing in cryptocurrency.

“Investors should always be wary of ‘too good to be true’ sounding investment opportunities, but new opportunities in cryptocurrency can be particularly difficult to evaluate for risks,” DFI said in a release.

DFI explained that cryptocurrency is a computer-based digital currency designed to work as a monetary system wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database.

“This database, or blockchain, uses strong cryptography to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership,” DFI stated. “Examples of cryptocurrencies include Bitcoin, Ethereum, Dogecoin, Litecoin, Binance Coin XRP, and Tron. These cryptocurrencies are often available through a crypto exchange, such as CoinBase or Binance.”

“Cryptocurrencies do not fall neatly into the existing state and federal regulatory framework yet, so it may be easier for promoters of these products to scam you,” said DFI Secretary Kathy Blumenfeld. “If you choose to invest in a cryptocurrency or related product, be prepared that some or all of the invested funds could be lost. Cryptocurrency investments are not…

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