SEC’s Shift Affects Crypto Security Risks – BitRss

The recent reduction of enforcement actions by the U.S. Securities and Exchange Commission (SEC) in the cryptocurrency sector has raised significant security concerns. This issue has gained attention following a major security breach where a substantial amount of assets was stolen from the crypto exchange Bybit.

Regulatory Debates

John Reed Stark, a former SEC official, expressed that the withdrawal of oversight on crypto platforms could lead to significant problems in protecting investors. He indicated that this situation reflects the regulatory body’s failure to fulfill its responsibilities adequately.

Critics emphasized that crypto exchanges lack the regulatory obligations that traditional financial institutions must meet. The absence of designated funds for customer assets, audits, insurance, and other protective measures has become a focal point of concern.

Security Vulnerabilities

The attack on Bybit has been linked to the Lazarus Group, a cybercrime organization believed to be based in North Korea. Experts stated that the attack is a clear outcome of the curr…