- The US House of Reps Committee on Oversight and Reform is intensifying its efforts to stop cryptocurrency fraud.
- The action entails sending several letters to various crypto exchanges and agencies inquiring their steps to safeguard consumers.
- Since 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams.
The US House of Reps Committee on Oversight and Reform declared on Tuesday, that it is intensifying its efforts to stop cryptocurrency fraud.
Rep. Raja Krishnamoorthi, Chairman of the Subcommittee on Economic and Consumer Policy, wrote letters of inquiry on fraud prevention to various regulatory agencies and exchanges.
The exchanges served included Binance.US, Coinbase, FTX, Kraken, and KuCoin alongside the US Department of Treasury, Securities and Exchange Commission, Commodity Futures Trading Commission, and Federal Trade Commission.
The House of Assembly wants to know “the steps they are taking to combat cryptocurrency-related fraud and scams and additional actions needed to protect Americans.”
Chairman Krishnamoorthi complained:
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.
Universally, the nine letters contain two key elements, where the first part lists the documents and information the recipients must deliver to the House Committee by September 12, 2022. Each recipient must tell the US reps how they evaluate the risks of digital assets and warn users of the potential risks of investing in them. Rep. Krishnamoorthi also enquired what the federal government might do to prevent fraud and theft relating to cryptocurrencies.
It is unsurprising that the Subcommittee on Economic and Consumer Policy is interested in digital assets. Since 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams, according to data published by the FBI and FTC.
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