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.
