“Companies raised $3.8 billion via ICOs in 2017, but the number this year has already climbed to $11.9 billion,” reports UPI. “Experts say some of the new digital currencies died because they were scams or jokes.”

Related: $50k Bitcoin Forecast Still in Play, Says BitMEX CEO

The SEC points out that some digital currency market participants and promoters of initial coin offerings (ICOs) are not following federal and state laws that govern other parts of financial markets, such as stocks and bonds.

“Unfortunately, it is clear that many promoters of ICOs and others participating in the cryptocurrency-related investment markets are not following these laws. The SEC and state securities regulators are pursuing violations, but we again caution you that, if you lose money, there is a substantial risk that our efforts will not result in a recovery of your investment,” the SEC said earlier this year.

For more information on the cryptocurrency market, visit our Bitcoin category.