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Globe says ASC, others see steep rise in crypo scams

2023-09-07 08:37 ET - In the News

See In the News (C-*ASC) Alberta Securities Commission

The Globe and Mail reports in its Thursday edition that the number of investor warnings sent out by market watchdogs across Canada has nearly tripled over the past year, according to a new report, as authorities have monitored a dramatic rise in consumer losses from crypto-related investment scams. The Globe's Jameson Berkow writes that between July 1, 2022, and June 30, 2023, members of the Canadian Securities Administrators issued 758 investor alerts, cautions and warnings, according to the CSA Year in Review report. More than half of them -- 422 -- were related to crypto. The total represents a 221-per-cent increase over the previous year, when 236 alerts were issued. Part of that increase can be attributed to the CSA being more pro-active about keeping the public informed about potential nefarious actors in the marketplace, said Stan Magidson, CSA chair and chief executive officer of the Alberta Securities Commission. "We are really much more now pro-actively putting out alerts where we are seeing problems with certain platforms, players or folks on social media that are clearly raising red flags for us. We are better off when we see a problem to go out early," Mr. Magidson said in an interview from Calgary.

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