SALT LAKE CITY — Utah’s regulators are warning investors that bitcoin and other digital currencies are risky investments that investigators say could be linked to fraudsters.
The state Division of Securities warned Friday that while cryptocurrencies such as bitcoin have become more popular and surged in value over the past year, they’re typically not backed by any tangible assets and are not insured or controlled by a central bank or government.
The regulators warn that the digital currencies involve extremely high levels of risk, can be hacked and are not always able to be exchanged for good and services.
They also warn that Utah’s tech-savvy culture makes the state ripe for fraud schemes associated with cryptocurrencies that promise high returns or sound too good to be true.
The U.S. Securities and Exchange Commission issued a similar warning in December.