Bitcoin buyer beware: US SEC warns 'extreme caution' over cryptocurrency investments

Head of US financial regulator concerned by lack of protections saying there are 'substantial risks of theft or loss, including from hacking'

The head of the US Securities and Exchange Commission has warned bitcoin and other cryptocurrency investors to beware of scams and criminal activity in the sector.

In the financial regulator's strongest statement yet, SEC chair Jay Clayton said: "If a promoter guarantees returns, if an opportunity sounds too good to be true, or if you are pressured to act quickly, please exercise extreme caution and be aware of the risk that your investment may be lost."