FTC Investigates BitMart Exchange For 2021 Hack

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

This is believed to be the agency’s first public probe into the cryptocurrency market revealed by order of the FTC. The operators of BitMart, Bachi.Tech Corporation and Spread Technologies have tried to block and even deny orders to force them to turn over information to the agency.

The FTC hopes these details will help determine whether the companies have engaged in unfair or deceptive business practices.

If BitMart operators are found to have misled users about its cybersecurity safeguards or failed to comply with financial services laws, the consumer protection agency may impose fines or companies into a deal, forcing them to reform their operations.

The FTC added that it is investigating whether BitMart operators comply with a separate federal law requiring financial institutions to protect sensitive customer data.

Last year, BitMart confirmed a cybersecurity breach in which a pair of wallets was hacked, resulting in consumer losses ranging from $150 to $200 million.

Soon after, the company’s executives pledged to compensate users affected by the hack. However, more than a month after the incident, victims still await more information from the exchange about the reimbursement of the lost funds.

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

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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