The SEC Office of Investor Education and Advocacy issued an Investor Alert intended to make investors aware of the potential risks of investments involving Bitcoin and other forms of virtual currency.
The Investor Alert describes Bitcoin and its properties, explaining that investments involving Bitcoin may lead to a heightened risk of fraud. The Investor Alert also provides additional resources to further explore the topic, including links to past SEC and FINRA Investor Alerts on digital currency, IRS Virtual Currency Guidance, and recent lawsuits and cases involving virtual currency.
See: SEC Investor Alert: Bitcoin and Other Virtual Currency-Related Investments.
Related news: IRS Provides Guidance on the Taxation of Bitcoin and Other Virtual Currency (March 27, 2014).