Congress Investigates Crypto Fraud Crackdown, Questioning Coinbase, FTX, Binance, and Kraken

September 1, 2022

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Four Americans have asked for information on what they are doing to combat fraud and cryptocurrency fraud. The Parliamentary Committee sent letters to federal agencies and five cryptographic operations. The Parliament Overview and Reforms committee made four US, sent by letters from federal agencies and five encryption operations. These four agencies are the Treasury Department, the Federal Trade Commission (FTC), the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC). The five crypto platforms are Coinbase, FTX US, Binance US, Kraken and Kucoin. Rep. Raja Krishnamurthy (D-IL), who signed the letters, explained, “They are asking for information about the actions they are taking to combat fraud and crypto fraud, and about additional measures needed to protect Americans. Commented Krishnamurthy, chairman of the subcommittee on economy and consumer policy.

As stories of soaring prices and overnight fortunes attracted professional and amateur investors to cryptocurrencies, scammers made money In June, the FTC announced that since the beginning of 2021, more than 46,000 people have lost more than $1 billion in cryptocurrency due to fraud. “This is one of the four dollars he lost and that’s more than any other payment method,” the controller said.

Krishnamurty underlined that “the irreversible nature of transactions, the absence of a central flagship of questionable transactions regularly, and a weak awareness of the fundamental technologies of many consumers and investors have produced a transaction system for fraudsters,” this MP stated. I am worried about the surge of cryptocurrency-related fraud and consumer misuse for all of the aforementioned reasons. Despite federal rules, cryptocurrency exchanges must take action to safeguard customers who use their services. Crypto exchanges can and should create a safer environment for customers by putting audit procedures into place, mandating particular disclosures, listings, and other security measures, the lawmaker said. From January 2009 to September 12, records from federal organisations and cryptocurrency exchanges were made public.

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