Definition ∞ Investor deception involves misleading individuals who commit capital, typically through false statements or the omission of important facts. This unethical and often illegal practice aims to trick investors into making decisions that benefit the deceiver. It usually results in financial harm for the victim and damages fair market operation.
Context ∞ In the volatile cryptocurrency market, investor deception is a recurring concern, frequently appearing in news related to rug pulls, fake project promotions, and manipulative trading practices. The decentralized and pseudonymous nature of some digital asset operations can make identifying and prosecuting perpetrators particularly difficult. Regulators and consumer protection agencies consistently caution against schemes that use misleading information to attract capital.
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