Congress Demands Info on Crypto Fraud from Major Exchanges and Agencies

Daniel Attoe
Daniel Attoe

Updated · Aug 31, 2022


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A House Committee slammed the cryptocurrency exchanges for their “lack of action” in protecting customers.

“Provide Scam-Combatting Steps”

A US Congress watchdog is leaning on federal agencies and major cryptocurrency firms over the rate of crypto scams and fraud. 

On Tuesday, the House Committee on Oversight and Reform sent letters to four agencies and five exchanges. It requested that they provide information on their strategies to combat scams and protect users.

The Federal Trade Commission, the Department of the Treasury, the Commodity Futures Trading Commission, and the Securities and Exchange Commission were the government recipients of the letters. They also went out to Coinbase, FTX, Binance.US, Kraken, and KuCoin.

The watchdog gave both the agencies and exchanges two weeks to respond to the letters with their fraud-prevention procedures. It asked them to show their attempts to “identify, investigate, and remove or flag potentially fraudulent digital assets or accounts”.

Crypto Attractive to Scammers

According to the Chair of the Subcommittee on Economic and Consumer Policy, Rep. Raja Krishnamoorthi, “scammers have cashed in” on the blockchain and crypto space.

“The lack of a central authority to flag suspicious transactions in many situations, the irreversibility of transactions, and the limited understanding many consumers and investors have of the underlying technology make cryptocurrency a preferred transaction method for scammers,” the Rep. wrote. 

The results of an FTC investigation indicate that more than $1 billion has been lost to crypto scams since 2021.



Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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