- CFPB proposes refunds for crypto theft, extending protection to digital assets like stablecoins.
- 2024 saw $2.2 billion in crypto thefts, with North Korean hackers responsible for most losses.
- CFPB expands “funds” definition, applying traditional consumer protections to digital assets.
The U.S. Consumer Financial Protection Bureau (CFPB) has put forth a proposal that would require crypto firms to reimburse users for losses caused by hacks or exploits. This proposed rule aims to extend the protections of the Electronic Fund Transfer Act (EFTA) to cover digital assets, including stablecoins.
If this passes, it could significantly change how crypto firms deal with security breaches. It would offer a new layer of protection for people affected by crypto theft.
This proposal comes as a response to the rising number of crypto hacks and security breaches. In 2024 alone, blockchain security firm Chainalysis reported 303 hacking incidents, resulting in the theft of $2.2 billion in digital assets.
North Korean hackers were behind over $1.6 billion of those losses. With these numbers in mind, the CFPB wants to boost consumer protection in the growing crypto mar…
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