Cryptocurrency billionaire Sam Bankman-Fried has demanded tighter government regulation to prevent fraud, hacking and “pump-dump” schemes in the US digital asset industry.
These comments by Bankman-Fried are based on the US Department of Justice’s $3.6 billion stolen in a hack dating back to 2016. Bitcoin It was made the day after he took it.
In 2016, a record amount of BTC was stolen from the cryptocurrency exchange Bitfinex. Bitcoin, worth $ 3.6 billion, seized a few days ago, reached a value of $ 4.5 billion at the time of this writing, with the increase in Bitcoin price.
In a statement to the Senate Agriculture Committee on Wednesday, Bankman-Fried demanded that crypto companies be subject to stricter cybersecurity and anti-hacking rules. The 29-year-old billionaire founded the cryptocurrency exchange FTX in 2019.
“Recent Hacks Highlight the Need for Federal Oversight”
Commenting on the recent high-volume hacking and scam attempts, Bankman-Fried said:
“I think these events highlight the need for federal oversight of the cryptocurrency industry. There have been numerous hacking and fraudulent incidents. Historically, a significant number of these incidents have occurred on unmonitored platforms.”
The FTX CEO also said he is “concerned about scams, ponzi schemes and pump-dump attempts” linked to cryptoassets.
Pump-dump attempts mean that people consistently say positive things about increasing the value of a crypto-asset, then sell it at the peak price. In these events, other investors who miss the peak price can suffer greatly.
Bankman-Fried, who has earned $25 billion from the crypto industry, has demanded that supervisors increase pressure on advertisers of certain crypto-assets to disclose their holdings.