FTC Probes $200 Million Bitmark Crypto Hack
In what is its first investigation into cryptocurrency markets, the Federal Trade Commission (FTC) looks into the Bitmark currency exchange on the December 2021 hack that cost consumers $200 million.
According to an FTC order filed Wednesday, Aug. 11, the agency denied a request from operators Bitmart Bachi.Tech Corp. and Spread Technologies LLC to rescind the agency’s attempt to compel them to disclose information.
“The investigation includes inquiries into Bitmart’s representations regarding its advertised exchange services,” the FTC said in the document.
He adds that he is also looking into whether “consumers have been denied access to their accounts” as well as “concerns about the security of customer accounts, particularly in light of…the 2021 security breach that resulted in a consumer loss of over $200 million in cryptocurrency.”
Read more: $196 Million Bitmart Hack Highlights Crypto Weakness
According to the document, Bachi and Spread argued that the FTC cannot compel Bachi.Tech to produce documents located in other countries, that the information it seeks is not relevant, and that its requests are too broad and would impose an undue burden.
Bitmart revealed the hack on December 4 last year. At the time, the company said $150 million in funds had been stolen, although cybersecurity experts later reconciled the figure to the $200 million listed by the FTC.
This news comes three weeks after another first in the world of crypto application in the United States. On July 21, the US Department of Justice indicted a former Coinbase executive and two other men in what it said was the first insider trading case involving cryptocurrency.
See also: Feds Charge 3 in First Ever Crypto Insider Trading Case
Ishan Wahi, a former chief product officer at Coinbase, his brother Nikhil Wahi, and Ishan’s associate Sameer Ramani have all been charged with wire fraud conspiracy and wire fraud.
These charges relate to an alleged scheme to engage in insider trading in cryptocurrency assets using internal Coinbase information about crypto assets that were to be listed on the company’s exchange.