FTC Denies BitMart’s Appeal; Launches Probe On $200 Million Hack

Federal Trade Commission (FTC) has decided to step into the cryptocurrency market by launching an inquiry into the BitMart 2021 hack. It was reported that customers lost around $200 million in the major hack.

FTC enters the crypto arena

According to a report by Bloomberg, BitMart operators Bachi.Tech Corporation and Spread Technologies LLC appealed to restrict FTC’s attempt to reveal the information. However, the agency denied this bid in an order.

BitMart operators mentioned that the FTC’s demand to disclose documents was very broad. It added that some of the asked information is located overseas.

The report revealed that the FTC sent civil subpoenas to the BitMart operator back in May. The agency was looking for the details of the company’s policies for handling crypto assets and users’ complaints. These details were needed in order to seek whether BitMart was involved in some illicit market practices.

However, the FTC is also inquiring whether the crypto exchange operators were safeguarding crucial customer data. Meanwhile, if this accusation turns out to be true then BitMart can face heavy fines. The agency can also order them to change their practices.

Earlier, the FTC fined giants like Uber technologies and Wyndham Hotels & Resorts for not maintaining the standards.

BitMart refuses to comment

As per the report, the FTC spokesperson chooses not to comment on this probe. While BitMart’s Lawyer didn’t even respond to requests for comments. Meanwhile, the crypto exchange was valued at over $300 million during last year’s funding round. It also revealed that it maintains offices in Hong Kong, New York, Seoul, and Singapore.

FTC’s this move landed after the release of US President Biden’s executive order. It mentioned that the Federal agency will study to control crypto transactions used in fraud and other illicit activities. Meanwhile, the agency has reproed that there is a very huge jump in crypto scams from 2020 to 2021.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.