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Globe/wire say SEC chairman warns on crypto promises

2022-06-15 09:25 ET - In the News

The Globe and Mail reports in its Wednesday edition that U.S. Securities and Exchange Commission chairman Gary Gensler said on Tuesday that investors should beware promised returns from crypto lending platforms and products that seem "too good to be true." The Wall Street watchdog's comments come a day after the world's largest cryptocurrency fell 15 per cent on Monday, its sharpest one-day drop since March, 2020. Bitcoin BTM22, which steadied on Tuesday, had earlier hit a new 18-month low as major crypto lender Celsius Network's freezing of withdrawals and the prospect of sharp U.S. interest-rate rises shook the volatile asset class. "We've seen again that lending platforms are operating a little like banks. They're saying to investors 'Give us your crypto. We'll give you a big return 7 per cent or 4.5 per cent return.' How does somebody offer [such large percentage of returns] in the market today and not give a lot of disclosure?" Mr. Gensler said. "I caution the public. If it seems too good to be true, it just may well be too good to be true." New Jersey-based Celsius, which has around $11.8-billion (U.S.) in assets, offers interest-bearing products to customers who deposit cryptocurrencies with its platform.

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