The owners of the cryptocurrency exchange BitMart are under investigation by the FTC for how they handled a hack in December.
In May, BitMart's owners received subpoenas from the consumer protection agency asking them to provide information regarding the quality of their customer service. So what happened to Bitmart hackers? What did FTC investigate Bitmart?
The Federal Trade Commission (FTC) is looking into the owners of the cryptocurrency exchange BitMart in relation to a hack that happened in December.
An FTC order made the investigation, the organization's first known examination into crypto marketplaces, public. The order rejected the operators of BitMart, Bachi.Tech Corporation and Spread Technologies, attempts to stop the government from requiring them to turn over information.
In May, the FTC served civil subpoenas on the businesses, requesting details about how they handled consumer complaints and what they had said to customers regarding the security of their crypto assets.
The owners of BitMart responded claiming the FTC's document request was too broad and that some information would be challenging to obtain because it was situated abroad.
The FTC thinks that by knowing these specifics, it will be able to assess whether the businesses used dishonest or misleading business tactics.
The consumer protection agency may levy fines or subject BitMart's operators to a consent decree, which would require them to change their methods, if it is discovered that they misled customers about their cybersecurity protections or violated financial services regulations.
Breaches of BitMart wallet
The hacking of two wallets last year, which caused consumer losses of between $150 million and $200 million, was confirmed by BitMart. Soon after, the chief executive officer of the business promised to make amends to users who had been hurt by the intrusion.
However, victims were still waiting for more information from the exchange regarding the reimbursement of lost monies more than a month after the occurrence.
Following a funding round last year, BitMart's valuation increased to over $300 million. It has offices in New York, Hong Kong, Singapore, and Seoul.
