Chairman Krishnamoorthi Statement on Government Reports Detailing Increased Risks of Crypto Scams and Fraud
Washington, D.C. (October 4, 2022)—Today, Rep. Raja Krishnamoorthi, Chairman of the Subcommittee on Economic and Consumer Policy, issued a statement in response to the U.S. Treasury Department’s Financial Stability Oversight Council’s release of its Report on Digital Asset Financial Stability Risks and Regulation. The report is the third in a series pursuant to a March 2022 Executive Order by President Biden.
The Department’s reports recognize the increasing risks that crypto-related fraud and scams pose to consumers, with one report noting that fraud and scams “have emerged as an especially grave area of concern in crypto-assets, with estimates of claimed losses reaching billions of dollars.” That report also found that “[s]cams were the largest form of crypto-asset-based crime by transaction volume in 2021,” with the overall number of scams rising by 60% year over year and the value of stolen assets rising over 80% to $7.8 billion.
“This proliferation of crypto-related fraud and scams is why I launched an investigation into what both cryptocurrency exchanges and the federal government are doing to combat such schemes,” the Chairman said. “While that investigation remains ongoing, I acknowledge the Treasury Department for taking the important step of recognizing the financial harm that crypto-related fraud and scams cause everyday investors who have been drawn to the United States’ fastest growing asset class by stories of skyrocketing prices and overnight riches. As the Treasury Department works to implement its recommendations in conjunction with other U.S. regulatory and law enforcement entities, I trust that it will maintain focus on how the U.S. government can combat fraud and scams that are fleecing American consumers and work to ensure that the cryptocurrency ecosystem becomes a safer place for investors.”
On August 30, 2022, Chairman Krishnamoorthi sent letters to four federal agencies and five digital asset exchanges requesting information about the steps they are taking to combat cryptocurrency-related fraud and scams and additional actions that are needed to protect Americans.