US States Issue Warnings Over Cryptocurrency Investments

The American states of Idaho and Alaska have both issued warnings over investments involving cryptocurrencies.

AccessTimeIconJan 5, 2018 at 12:00 p.m. UTC
Updated Sep 13, 2021 at 7:20 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

The American states of Idaho and Alaska have both issued warnings over investments involving cryptocurrencies.

Idaho's Department of Finance warned its people on Thursday to deal cryptocurrency investments with caution. It said that a survey by the North American Securities Administrators Association (NASAA) has reported that 94 percent of state and provincial securities regulators believe that bitcoin and other digital currencies involve "high risk of fraud."

Gavin Gee, director of the Idaho Department of Finance, said that unsuspecting investors get tempted by the recent wild price fluctuations and speculation surrounding cryptocurrencies and rush into investments that they don't understand fully.

Gee stated:

"Cryptocurrencies and investments tied to them are high-risk products with an unproven track record and high price volatility. Combined with a high risk of fraud, investing in cryptocurrencies is not for the faint of heart."

Cryptocurrencies are susceptible to cybersecurity breaches or hacks and the high volatility of such investments makes them unsuitable in sizable amounts for many investors, the note stated.

The Department of Finance also reminded investors to keep an eye out for common red flags of investment fraud, including unsolicited offers, unlicensed sellers and guarantees of high returns.

The state of Alaska has also released a statement urging the public to view cryptocurrency investments with caution.

Kevin Anselm, director of the state's Division of Banking and Securities, said that cryptocurrencies "aren't a typical investment." She emphasized that people have to understand the risks of investments, such as hacks or fraud, and what the offerer is giving in return, a local news media report said.

Anselm added that there has been a rise in reports of Alaskans being asked to buy new cryptocurrencies.

Warning light image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.