NASHVILLE, Tenn. (WTVF) — The office of the state's top lawyer is warning about pyramid schemes involving cryptocurrency.
The Division of Consumer Affairs in the Attorney General's office said they have gotten complaints about recruitment schemes happening on different Bitcoin sites. They said do your research before investing in a company.
The office said the complaints are happening at the same time companies are more often claiming to use A-I and bitcoin to get the most back on your investment. The companies are offering money for every investor you bring in. In a release, they said to stay away from companies that do that.
The Attorney General's office said pyramid distribution is "doomed to fail" because it relies on recruiting new members -- which ultimately means you would not get your investment.
"Investing in Bitcoin and artificial intelligence has risks like any other investment vehicle and is highly volatile. Everyone cannot 'win' and a company cannot guarantee returns in these investments," the release said.
They said the markets are not suitable for most people looking to meet long-term savings or retirement goals. If you choose to invest, the value of the product can increase or decrease like other investments, so you could lose your money you invested.
"Before making any financial decisions, talk to a financial adviser and/or thoroughly do your research. You may also contact the Tennessee Securities Division, your state’s securities regulator," the release said.
If you need to report complaints, there are different avenues you can take:
- For being treated unfairly by a company you can file a complaint at tn.gov/consumer
- Pyramid distribution schemes are reported to the F.T.C.
- For complaints with fraudulent investment activity go to tn.gov/securities
