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FTC Investigates BitMart Over Handling of 2021 Hack

The operators of cryptocurrency exchange BitMart are being investigated by the Federal Trade Commission (FTC) over a hack that occurred last Dec.

The post FTC Investigates BitMart Over Handling of 2021 Hack appeared first on BeInCrypto.

The operators of cryptocurrency exchange BitMart are being investigated by the Federal Trade Commission (FTC) over a hack that occurred last Dec.

The investigation, the agency’s first-known probe into crypto markets, was revealed in an FTC order. BitMart’s operators, Bachi.Tech Corporation and Spread Technologies, had sought to prevent the agency from compelling them to turn over information, which the order denied.

The FTC issued civil subpoenas to the companies in May, soliciting information about how they handled customer complaints and what they had told consumers about the security of their crypto assets.

In response, BitMart’s operators argued that the FTC’s document request was overly broad, and that some information would be difficult to procure, being located overseas.

The FTC hopes that these details will help it determine whether the firms engaged in unfair or deceptive business practices.

If BitMart’s operators are found to have misled users about its cybersecurity protections or not complied with financial-services laws, the consumer-protection agency could impose fines or put the companies under a consent decree, which would compel them to reform their practices. 

The FTC added that it was investigating whether the BitMart operators have been complying with a separate federal law requiring financial institutions to safeguard sensitive customer data. 

BitMart wallet breach

Last year, BitMart confirmed a cybersecurity breach in which a pair of wallets was hacked, leading to consumer losses between $150 million and $200 million. Shortly afterward, the company’s chief executive officer pledged to compensate users that had been affected by the incursion.

However, over a month after the incident, victims were still waiting for further communication from the exchange regarding the reimbursement of lost funds.

BitMart achieved a valuation of over $300 million after a funding round last year, and has offices in New York, Hong Kong, Singapore, and Seoul.

The post FTC Investigates BitMart Over Handling of 2021 Hack appeared first on BeInCrypto.

Source: Markets – BeInCrypto

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CFTC charges Digitex founder over illegal crypto derivatives platform

The Commodity Futures Trading Commission (CFTC), has brought charges against Adam Todd, the founder…

The post CFTC charges Digitex founder over illegal crypto derivatives platform appeared first on CoinJournal.

The Commodity Futures Trading Commission (CFTC), has brought charges against Adam Todd, the founder of crypto derivatives platform Digitex, according to court documents filed in a US court.

The futures market regulator is suing Todd over his operating of an unregistered derivatives trading venue in violation of the Commodity Exchange Act (CEA), the filing showed.

Digitex used multiple entities

As per the CFTC charges filed in the Southern District of Florida, Todd is accused of building and operating the Digitex crypto derivatives trading platform illegally. The defendant is said to have used multiple entities to bring his services to the public, with cited entities being Digitex LLC, Digitex Software Ltd., Digitex Ltd. and Blockster Holdings Ltd. Corp.

The CFTC seeks monetary penalties, disgorgement, a ban against Todd and Digitex.

The action against Digitex is the latest complaint by the CFTC against a crypto entity or individual as regulators increasingly spotlight violations across the industry.

Last week, the agency fined founders of bZeroX Tom Bean and Kyle Kistner for violating the Commodity Exchnage Act in their offerig of leveraged and margined products to retailers. The regulator also filed a complaint against decentralised autonomous organisation Ooki DAO.

The post CFTC charges Digitex founder over illegal crypto derivatives platform appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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