Feds eye crackdown on digital coin investments

This is the best tl;dr I could make, original reduced by 84%. (I'm a bot)

At issue are initial coin offerings, where new companies or smaller projects seek to crowdfund - or raise investment funds from the public - through crypto online currencies.

Hackers targeted the group in May of last year after one of the highest-profile initial coin offerings.

The agency said DAO users were investing money in the coin offerings with the expectation of making profits.

The move highlighted how the SEC is putting the microscope on cryptocurrencies and initial coin offerings.

In their report, the SEC warned investors to make sure a coin offering is registered properly if it is a securities exchange, and to learn about their rights and level of control, as well as to understand potential cybersecurity threats.

"They're the right people to look at it this sort of thing, says Peter Van Valkenburgh director of research at Coin Center, a research and advocacy group focused on digital currencies."Creating token and selling them is like selling portions of businesses.

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