<mediadc-video-embed data-state="{"cms.site.owner":{"_ref":"00000161-3486-d333-a9e9-76c6fbf30000","_type":"00000161-3461-dd66-ab67-fd6b93390000"},"cms.content.publishDate":1660226648929,"cms.content.publishUser":{"_ref":"0000017c-2d8e-d3f3-a7fc-7ffef6720000","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"cms.content.updateDate":1660226648929,"cms.content.updateUser":{"_ref":"0000017c-2d8e-d3f3-a7fc-7ffef6720000","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"rawHtml":"
var _bp = _bp||[]; _bp.push({ "div": "Brid_60226638", "obj": {"id":"27789","width":"16","height":"9","video":"1073086"} }); ","_id":"00000182-8d38-d34d-ab93-cff9290f0000","_type":"2f5a8339-a89a-3738-9cd2-3ddf0c8da574"}”>Video EmbedThe Federal Trade Commission is probing a cryptocurrency exchange over a December 2021 hack, making it the first publicly known investigation from the agency into the crypto industry.
The agency disclosed the investigation in a Wednesday order denying a bid from the operators of the cryptocurrency exchange BitMart to block the FTC from access to its internal data. The operators, Bachi.Tech Corporation and Spread Technologies, had requested the block on the grounds that the FTC cannot force them to provide materials located abroad, that the request was far too broad, and that the request placed an undue burden on the firms.
INDUSTRY SAYS TREASURY CROSSED A LINE IN SANCTIONING HIGH PROFILE CRYPTO ENTITY
The FTC is currently seeking information about “BitMart’s representations concerning its advertised exchange services; allegations that consumers have been denied access to their accounts; and concerns about the security of customer accounts especially in light of a publicly reported 2021 security breach that resulted in consumer loss of more than $200 million in cryptocurrency,” the order said.
BitMart’s operators received civil subpoenas from the commission in May seeking details about the security breach, according to the order. The agency was seeking information about the company’s communications and security in order to determine if the company had engaged in unfair or deceptive practices. It was also attempting to determine if the exchange’s operators were complying with federal laws requiring financial entities to protect customer data.
The exchange was hacked on Dec. 4, 2021, and lost $196 million in crypto assets, according to an analysis from the security firm PeckShield. The firm said that it would reimburse victims with its own money and that the hack occurred via a stolen private key.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
This is the first publicly known crypto-related investigation since President Joe Biden issued a March 9 order encouraging more oversight within the crypto industry. The order included additional oversight powers provided to the FTC and its sister agency, the Consumer Financial Protection Bureau.
An FTC spokesperson declined to comment on the investigation.
