Feb 19, 2023
DC Slammed for Ignoring Crypto Fraud Warnings
Caitlin Long, the CEO of Custodia Bank, has slammed regulators and lawmakers in Washington D.C. for their “misguided crackdown” on the crypto sector and ignoring her warnings of major “fraud” allegedly conducted by now-bankrupted entities.
In a blog post titled, Shame On Washington, DC For Shooting A Messenger Who Warned of Crypto Debacle, Long discussed the government’s approach to crypto regulation, failing to protect investors and alienating good actors in the space.
“Washington’s misguided crackdown will only push risks into the shadows, leaving regulators to play whack-a-mole as the risks continuously pop up in unexpected places,” she said.
Long further claimed that Custodia Bank has “been calling out the worst of crypto while trying to build a lawful, compliant alternative that relegates scams to the trash heap.”
The Custodia Bank CEO also noted that her efforts to work with government agencies were ultimately thrown back in her face as she recounted the spate of negative run-ins her firm has had of late.
“Custodia was simultaneously attacked by the White House, the Federal Reserve Board of Governors, the Kansas City Fed and Senator Dick Durbin (who conflated our non-leveraged, 100-percent liquid and solvent bank with FTX in a Senate floor speech).”
Long echoed the sentiments of Coinbase CEO Brian Armstrong, who has suggested on multiple occasions that agencies like the SEC have reacted frostily to his firm’s efforts to maintain a dialogue in good faith.
On Twitter, Long also suggested that well before the implosion of several crypto firms in 2022, she and many others had tried to warn Washington and “help law enforcement stop” major fraud, but to no avail.
The Custodia Bank CEO publicly disclosed for the first time that she had “handed over evidence to law enforcement of probable crimes” committed by an unnamed crypto firm “months before that company imploded and stuck its millions of customers with losses.”
Kraken co-founder and CEO Jesse Powell responded to Long’s Twitter thread and corroborated her statements by noting that: “I can’t tell you how infuriating it is to have pointed out massive red flags and obviously illegal activity to regulators only to have them ignore the issues for years.”
The crypto sector has been growing at an unprecedented rate in recent years, with NFTs becoming increasingly popular. As the sector continues to expand, it is becoming more apparent that regulators and lawmakers need to take a more proactive approach to ensure the safety of investors.
NFTs are digital assets that are secured using blockchain technology, and they are becoming increasingly popular for their ability to represent digital art, collectibles, and other digital items. NFTs have become a powerful tool for companies to promote their products and services, as well as to engage with their customers.
In order to capitalize on this trend, companies have begun to hire NFT marketing agencies to help them create and promote their NFTs. These agencies specialize in helping companies create and market NFTs on social media platforms such as Twitter. They also help companies to sell their NFTs and to create a strategy for their NFTs to maximize their reach and engagement.
The success of NFTs has led to an increase in demand for web3 agencies, which are specialized in helping companies navigate the complex world of blockchain and cryptocurrency. These agencies provide services such as advising companies on how to create, market, and sell their NFTs. They also provide guidance on how to comply with regulations and how to protect investors.
The crypto sector is an ever-evolving space and it is essential that regulators and lawmakers take a proactive approach to ensure that investors are protected and that the sector continues to grow in a safe and compliant manner. It is also essential that those in the space continue to work with the government to ensure that the sector is properly regulated and that the interests of investors are protected.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
