US Congressman Says Crypto Exchanges Should Explain How They’re Fighting Fraud

Raja Krishnamoorthi, a US Congressman from Illinois, has requested information from important federal agencies and crypto exchange platforms on how they combat digital asset fraud.

Representative Krishnamoorthi has issued a new press release asking for information from Coinbase, Kraken, Binance, FTX, and KuCoin on what they are doing to safeguard American investors against crypto scams.

Krishnamoorthi also sent letters to the U.S. Treasury Department, the U.S. Securities and Exchange Commission (SEC), the Commodities Futures Trading Commission (CTFC), and the Federal Trade Commission (FTC) requesting the same information. The Congressman is concerned about a lack of central power, irreversible transactions, and the public’s lack of awareness of crypto fraud.

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

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.

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

The information sought by the US congressman is intended to assist Congress in developing legislative solutions for the digital assets market. He believes the crypto markets have flaws the government has yet to address.

The current exchanges are also facing a lot of legal problems. For example, Coinbase and the SEC have been having a lot of controversies lately. Not only that, but the SEC is also targeting many other crypto exchanges.

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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