Legislators check Coinbase, Binance, FTX for crypto fraud
Legislators check Coinbase, Binance, FTX for crypto fraud
- Five large cryptocurrency exchanges were asked to submit documents to the US legislators
- federal authorities were asked whether crypto stocks should be treated as goods, securities or both
Almost half a million people have lost more than $ 1 billion through cryptocio and fraud since the beginning of last year - a Number of this has now prompted to examine a committee of the US House of Representatives, such as large exchanges such as Coinbase, FTX and octopus work.
rep. Raja Krishnamoorthi, Chairman of a Supervisory Board for Economic and Consumer Policy, letters sent to four federal authorities and five crypto exchanges on Tuesday and asked for information about the mechanisms that are for combat Have fraud and fraud.
his nine letters were sent to the Verfapier- und Börsenkommission (sec) Rel = "Nofollow noopener" Target = "_ blank" https://oversight.house.gov/sites/democrats.oversight.house.gov/2022-08-30.RK%20Behnam-cftc%20Crypto%20frauD.pdf "> Commodity Futures Trading Commission , Federal Trade Commission , , Krake> Krake> and Kucoin .
"The lack of a central authority to mark suspicious transactions in many situations, the irreversibility of transactions and the limited understanding of many consumers and investors about the underlying technology make cryptocurrencies a preferred transaction method for fraudsters," wrote Krishnamoorthi.
"For all of these reasons, I am concerned about the increase in fraud and consumer abuse in connection with cryptocurrencies." The five crypto exchanges were not asked the same questions.
The Congressman emphasized that of the Ministry of Justice Newer charges In terms of fraud, coin offers and billboard as examples of fraud.
Software developers also used the increased interest to create tokens, write them down on stock exchanges and pump them before they flee with investor money, noted Krishnamoorthi.
The blockchain analysis platform Chainlysis estimates that these so-called RUG pulls have formed 37 % of the fraud in 2021-a massive jump of only 1 % in 2020.
Krishamoorthi asked the agencies and companies to provide specific information that would support the congress in the development of laws to stabilize the industry with a deadline until September 12th.
"Should cryptocurrency stocks be treated as raw materials, securities or both? Please explain", one of the questions asked. The matter has triggered a debate, especially since the SEC recently accused a former Coinbase product manager of insider trade, who claimed that he had bought at least nine crypto tokens that are to be classified as securities.
Krishamoorthis Please for information from the crypto industry underlines the increasing steps of relevant authorities in order to contain companies that work in this area.
The Federal Bureau of Investigation also warned on Monday that criminals exploit the interest of investors in cryptocurrencies. Immunefi data show that hacks against defi protocols (Decentralized Finance) led to losses of over $ 1.2 billion in the first quarter, which corresponds to an almost eight-fold increase compared to the same time in the previous year.
In July, the Democrats were looking for information especially from cryptocurrency offenses. After they had come to "disturbing" findings about the environmental impact of the crypto mining, Senator Elizabeth Warren and US MP Rashida Tlaib were among the six legislators who asked miners to disclose their emissions and energy consumption.
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The contribution of Lawmaker's sample Coinbase, Binance, FTX Over Crypto MARD is not a financial advice.