Congress Questions Coinbase, FTX, Binance, Kraken in Crypto Fraud Crackdown

A House committee has sent letters to 4 U.S. national agencies and 5 cryptocurrency exchanges asking for accusation astir what they are doing to combat cryptocurrency fraud and scams.

Congress Questions Regulators and Crypto Exchanges

The House Committee connected Oversight and Reform sent letters to 4 U.S. national agencies and 5 crypto exchanges connected Tuesday successful an effort to ace down connected crypto-related fraud and scams.

The 4 agencies are the Department of the Treasury, the Federal Trade Commission (FTC), the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC). The 5 crypto trading platforms are Coinbase, FTX US, Binance US, Kraken, and Kucoin.

The letters petition “information astir the steps they are taking to combat cryptocurrency-related fraud and scams and further actions that are needed to support Americans,” explained Rep. Raja Krishnamoorthi (D-IL), who signed the letters.

Krishnamoorthi, who chairs the Subcommittee connected Economic and Consumer Policy, commented:

As stories of skyrocketing prices and overnight riches person attracted some nonrecreational and amateur investors to cryptocurrencies, scammers person cashed in.

The FTC said successful June that since the commencement of 2021, much than 46,000 radical person reported losing implicit $1 cardinal successful crypto to scams. “That’s astir 1 retired of each 4 dollars reported lost, much than immoderate different outgo method,” the regulator noted.

“The deficiency of a cardinal authorization to emblem suspicious transactions successful galore situations, the irreversibility of transactions, and the constricted knowing galore consumers and investors person of the underlying exertion marque cryptocurrency a preferred transaction method for scammers,” Krishnamoorthi emphasized.

The lawmaker added:

For each these reasons, I americium acrophobic astir the maturation of fraud and user maltreatment linked to cryptocurrencies.

“Notwithstanding national regulations, cryptocurrency exchanges indispensable themselves enactment to support consumers conducting transactions done their platforms. By implementing audit policies, requiring definite disclosures, delisting, and adopting different information mechanisms, cryptocurrency exchanges can—and should—create safer environments for consumers,” the congressman detailed.

The letters inquire the national agencies and crypto exchanges to supply documents dated from January 2009 to the contiguous by Sept. 12.

What bash you deliberation astir Congress questioning national agencies and crypto exchanges astir their measures against cryptocurrency fraud and scams? Let america cognize successful the comments conception below.