FTC probe in Bitmart-Hack worth $ 200 million is continued after the Doc blocking has been refused

FTC probe in Bitmart-Hack worth $ 200 million is continued after the Doc blocking has been refused

An investigation by the Federal Trade Commission (FTC) against the Bitmart crypto exchange due to the security violation of $ 200 million in December.

The investigation, supposedly the first known examination of the FTC within the crypto industry, was described in detail ftc-application Wednesday.

FTC commissioners recently rejected the petition of the operators to stop the demands for certain corporate documents that would help them determine whether Bitmart operators were involved in illegal practices and marketing.

Bitmart suffered a security infringement in December 2021, in which two of his crypto-hotel walls were confiscated and large amounts of tokens that belonged to his customers were lost.

Sheldon Xia, CEO of the stock exchange, said that a private key from the company was used to withdraw the funds and promised to make the users complete.

In May, FTC Bachi.Tech Corporation and spread technologies made charging to obtain information about the communication of companies with customers about the safety of their crypto systems.

Both operators claimed that the Civil Investigative Demand (CID) of the FTC asked about irrelevant information that would unlikely to lead to material evidence.

Bach.Tech also claimed that the applications of the regulatory authority were "inappropriate" - an assertion that FTC was reflected. "The process recipient must explain how to answer the CID request a significant disruption of its business operations," it said in the disposition.

The FTC also examines both operators under Gramm-leach-Blile-ACT Have to disclose practices to exchange information with customers.

Bitmart was founded in 2017 and is a stock exchange for digital assets registered on the Kaiman Islands. The daily trading volume on the platforms, one of the smaller companies in the industry, recently was $ 4.8 million. Coinmarketcap show data.

bachi.tech did not answer the request from Blockworks for comment until the editorial deadline, while spreading technologies was not available.

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