As bitcoin and rivals surge, so too have complaints to the CFPB – MarketWatch

Fixes the total number of complaints made to the CFPB in 2017.

As the price of bitcoin and its digital currency rivals surge, so too have complaints to the Consumer Financial Protection Bureau.

Through August, there have been 277 complaints about virtual currencies lodged to the CFPB compared with just seven in 2016, according to student loan marketplace LendEDU.

That may be understating the complaints from consumers there have been another 288 complaints lodged against Coinbase, the leading bitcoin wallet.

The issues with virtual currencies are still a fraction of the 145,948 complaints made to the CFPB this year.

Consumer complaints do not necessarily mean that illegal activity has occurred, but regulators and researchers use the CFPBs database as an early warning sign of potential nefarious activity.

Bitcoin BTCUSD, -0.53% has surged 386% this year, and other digital currencies have surged in price as well.

Read: Value of all digital currencies surpasses $160 billion

The CFPB has said that consumers should be aware of potential issues with virtual currencies such as unclear costs, volatile exchange rates, the threat of hacking and scams, and that companies may not offer help or refunds for lost or stolen funds. It has not, however, taken any enforcement action.

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As bitcoin and rivals surge, so too have complaints to the CFPB – MarketWatch

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