New Rule Proposed to Hold Crypto Firms Accountable for Hack Refunds
The U.S. Consumer Financial Protection Bureau (CFPB) is reportedly pushing for new rules that would require cryptocurrency firms to reimburse customers who lose funds due to hacks or exploits.
This proposal, aimed at strengthening consumer protections, mirrors safeguards already in place for traditional banking customers.
According to The Financial Times, the proposed rule seeks to redefine “funds” to include digital assets used for payments. If adopted, crypto wallet providers would be held accountable for compensating users whose assets are stolen, aligning the crypto industry with the same standards applied to conventional financial institutions.
The need for such measures is underscored by alarming data from 2024. Chainalysis reports that crypto platforms lost $2.2 billion to hacks, marking a 20% increase from the previous year. While hacking incidents slowed in the latter half of the year, the scale of thefts remains significant.
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Notably, North Korean hacking groups emerged as major players in these exploits, stealing a record $1.34 billion worth of digital assets in 2024. This figure more than doubled their haul from 2023, when they stole $660 million, highlighting the persistent security challenges within the crypto space.
The CFPB’s proposed rule aims to address these risks by ensuring greater accountability from crypto firms, offering users protections similar to those enjoyed in traditional financial systems. If implemented, it could mark a significant shift in how the industry approaches security and consumer trust.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
