US House Committee Plans to Investigate All Crypto-Related Scams Since 2009

Updated:

As regulators move to regulate the cryptocurrency space around the world, the US House Committee on Oversight and Reform recently sent letters to four US federal agencies and five cryptocurrency exchanges as it moves to crack down on cryptocurrency-based scams and other vices.

The four federal agencies that received a letter from the committee on Tuesday include the Department of the Treasury, the Federal Trade Commission (FTC), the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC). Meanwhile, the crypto exchanges mentioned above include BinanceUS, Coinbase, FTX, Kraken, and Kucoin.

The letters, which were signed by Rep. Raja Krishnamoorthi (D-IL) requested “information about the steps they are taking to combat cryptocurrency-related fraud and scams and additional actions that are needed to protect Americans.”

Rep. Raja Krishnamoorthi (D-IL)

US House Committee Member Krishnamoorthi Speaks

Commenting on the development, Rep. Krishnamoorthi, who chairs the Subcommittee on Economic and Consumer Policy, noted:

“As stories of skyrocketing prices and overnight riches have attracted both professional and amateur investors to cryptocurrencies, scammers have cashed in.”

A report from the FTC in June revealed that 46,000 victims have reported losing over $1 billion in crypto to various scams since the start of 2021. The regulator noted at the time, “That’s about one out of every four dollars reported lost, more than any other payment method.”

Rep. Krishnamoorthi emphasized:

“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 Democratic lawmaker further noted:

“For all these reasons, I am concerned about the growth of fraud and consumer abuse linked to cryptocurrencies.

Notwithstanding federal regulations, cryptocurrency exchanges must themselves act to protect consumers conducting transactions through their platforms. By implementing audit policies, requiring certain disclosures, delisting, and adopting other safety mechanisms, cryptocurrency exchanges can —and should— create safer environments for consumers.”

The agencies and exchanges were requested to provide documents from January 2009, the beginning of Bitcoin, to present by September 12.

 

You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.