The SEC just warned investors that crypto assets are at risk of 'significant' losses after $2 trillion in market value was already erased

• The SEC warned that cryptocurrencies could still spur significant losses for investors.

• The warnings comes more than a year after the cryptocurrency market erased $2 trillion in market value.

• "The only money you should put at risk with any speculative investment is money you can afford to lose entirely," the SEC warned.

Long after a brutal bear market kicked off in cryptocurrencies, the Securities and Exchange Commission is warning investors that cryptocurrency investors are exposed to extreme risks that could ultimately lead to significant losses.

The bulletin from the SEC on Thursday comes more than a year after the crypto market erased $2 trillion in market value, as bitcoin, ethereum, and thousands of other crypto tokens plummeted as the Federal Reserve aggressively hiked interest rates and sparked a risk-off environment among investors.

"Investments in crypto asset securities can be exceptionally volatile and speculative, and the platforms where investors buy, sell, borrow, or lend these securities may lack important protections for investors. The risk of loss for individual investors who participate in transactions involving crypto assets, including crypto asset securities, remains significant," the SEC warned.

The SEC also highlighted that not only are crypto tokens extremely speculative and risky, but many of the platforms that investors use to buy cryptocurrencies could be at risk and "may not be complying with applicable law, including federal securities law."