The U.S. Securities and Exchange Commission (SEC) has issued a warning to retail investors regarding the risks associated with cryptocurrency custody and security. The SEC emphasizes the importance of selecting reliable custodians and understanding the intricacies of private key storage. Investors are advised to protect themselves against potential threats such as hacking, bankruptcy, and asset commingling.
The guidance urges investors to secure their private keys, remain vigilant against phishing attacks, and utilize strong passwords along with multi-factor authentication. Additionally, the SEC highlights the significance of Countering the Financing of Terrorism, particularly in relation to liquidity and the broader crypto markets.
SEC Issues Warning on Crypto Custody and Security Risks
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