Crypto-Destined 401(k) Ditchers Are on Labor Regulators’ Radar

Kabir Hemrajani took the plunge in 2020. He rolled over the entirety of an old 401(k) into a new kind of individual retirement account he’d heard about—a crypto IRA.

Now, the 42-year-old Boston-area video game developer said he’s lost more than two-thirds of his principal investment worth tens of thousands of dollars. But Hemrajani isn’t worried.

“I’ve been through enough boom and bust cycles of crypto that I would expect, over the next 20 years, when I want that IRA to go up that it will go up significantly,” he said in an interview.

Hemrajani is part of a new ...