The Securities and Exchange Commission (SEC) has moved out strongly in a bid to hold to account a former Bitcoin-denominated platform as well as Jon E. Montroll who happens to be its founder. This it did through a filing of fraud charges and it hopes that justice will be dispensed in good time.
Cases of fraud in these particular sectors are with the passage of time becoming pretty common. In the same line of thought it is crucial to point out a recent glitch that occurred in a Japanese cryptocurrency exchange called Zaif which resulted in quite a significant loss. Reports indicated that users had taken advantage of the system glitch to move ahead and place their respective BTC/JPY orders at a rate of 0 yen per Bitcoin.
With this said, one helpful point according to market observers is that much needs to be done in line with setting in place measures to ensure that security is tight. Also in the line, much caution and system monitoring needs to be put into consideration. That is in order to avoid the huge losses.
According to the statement given by the SEC, the operator had been deceitful thus taking advantage of many, a matter that the body finds unacceptable. It has indicated its willingness to channel everything it can in terms of efforts and resources to ensure that justice is administered and they pay for their ‘crime.’
A person well conversant with the matter said, “The SEC alleges that BitFunder and Montroll defrauded exchange users by misappropriating their Bitcoins and failing to disclose a cyberattack on BitFunder’s system that resulted in the theft of more than 6,000 Bitcoins which were worth $775,075 at that point in time.”
The Director of the SEC’s New York Regional Office Marc Berger while addressing several news reporters recently disclosed that there was great need for those platforms engaging in the activity of a national securities exchange to make sure that they are registered regardless of whether they trade on either the digital currencies or digital assets. A lot of people will be following closely to see how matters unfold.