Chairman Krishnamoorthi requests information from five crypto exchanges on fraud prevention! On August 30th, Rep. Raja Krishnamoorthi, Chair of the Subcommittee on Economic and Consumer Policy of the House Committee on Oversight and Reform, sent letters to four federal agencies and five crypto exchanges.
On August 30th, Rep. Raja Krishnamoorthi sent letters to four federal agencies and five crypto exchanges. Four federal agencies on the list are the US Department of Treasury, Securities and Exchange Commission, Commodity Futures Trading Commission, and Federal Trade Commission. The five exchanges that received the letters are Binance US, Coinbase, FTX, Kraken, and KuCoin. Each received a letter requesting information on steps they are taking to combat crypto fraud and scams, plus actions to protect American consumers.
NEW: Chair @CongressmanRaja sent letters to four federal agencies and five digital asset exchanges requesting information about the steps they are taking to combat cryptocurrency-related fraud and additional actions that are needed to protect Americans. https://t.co/pu5Zl63wDR
— Oversight Committee (@OversightDems) August 30, 2022
Krishnamoorthi added, “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.”
In the letter to four federal agencies and five crypto exchanges, Krishnamoorthi requested information on how they combat crypto fraud and scams.
Krishnamoorthi requested the federal agencies to provide all policies, guidance, and other official documents regarding their efforts to minimize crypto fraud and scams, including whether they inform consumers about the risks of investing in crypto. In addition, there are also five questions they have to answer.
For the crypto exchanges, Krishnamoorthi also requested documents on how they combat crypto scams and fraudulent activity. There are also five questions to answer, such as the tools they have to minimize the risk of fraud and other criminal activity.
Unfortunately, crypto scams and fraud are common to happen in the industry. The letters are good to see how federal agencies and exchanges avoid criminal activities.