Ireland Central Bank Governor Gabriel Makhlouf has recently called for action to be taken against cryptocurrency “ponzi schemes” that have been on the rise. Makhlouf’s remarks came in a speech at Trinity College in Dublin on May 4, 2023. He highlighted that while cryptocurrencies have become increasingly popular, there are risks associated with investing in them, including fraud, money laundering, and market volatility
Makhlouf pointed out that “ponzi schemes” are particularly concerning as they lure unsuspecting investors with promises of high returns but ultimately collapse, leaving investors with nothing. He urged regulators to take swift action to protect consumers, noting that such schemes can damage the reputation of the wider cryptocurrency market.
The Ireland Central Bank has also released a PDF titled “Crypto ‘Ponzi Schemes’: Risks and Recommendations for Investors” which provides guidance for investors to identify such schemes and protect themselves from potential fraud. The PDF includes information on how these schemes operate, red flags to watch out for, and steps to take if someone suspects they have fallen victim to such a scam.
Makhlouf’s remarks come at a time when the cryptocurrency market is experiencing a surge in popularity, with Bitcoin and other digital currencies hitting record highs. However, this popularity has also led to an increase in scams and frauds targeting unsuspecting investors. Regulators around the world are stepping up efforts to combat these activities and protect consumers.
In conclusion, Gabriel Makhlouf’s call for action on cryptocurrency “ponzi schemes” highlights the need for increased vigilance and regulation in the crypto market. Investors must take the necessary precautions to protect themselves from potential fraud, and regulators must take swift action to investigate and prosecute those who engage in such activities.
