US SEC leaks personal information of cryptocurrency miners

Is it leaked due to a mistake in setting the destination of the mail?

The U.S. Securities and Exchange Commission (SEC) leaked the personal information of cryptocurrency miners while conducting an investigation into blockchain company Green. The Washington Examiner reported on the 17th.

The SEC has contacted consumers who purchased products from Green to conduct hearings in connection therewith. At this time, the SEC did not bcc the email addresses of more than 650 people in the Jan. 6 email address.

bcc is a function to keep addresses anonymous when sending mail to multiple people. By not applying this, anyone who received the email could see the names and email addresses of over 650 people.

Officials say the breach puts crypto miners whose emails have been exposed to the risk of being hacked by mining nodes. As of the 17th, no hacking has been reported.

“Protecting the privacy of all parties is extremely important and we are currently investigating this matter,” an SEC spokesperson said in a statement.

Privacy protection is also required by law. The SEC clarifies on its website that personal information collected by the agency for research purposes is protected by the Privacy Act of 1974.

Privacy laws prohibit the disclosure of information obtained by federal agencies in the United States without consent. As such, the email may constitute a violation of privacy from a legal standpoint.

Sue Gemini and Genesis

The SEC filed a lawsuit against major cryptocurrency exchange Gemini and cryptocurrency lender Genesis on Thursday for violating securities laws.

“Gemini Earn,” a service that allows customers to lend cryptocurrencies to Genesis through Gemini and earn interest, falls under the category of selling unregistered securities. The SEC has filed a complaint in the New York District Court, seeking fines and return of unfair gains.

Genesis has suspended withdrawals due to the bankruptcy of FTX, and Gemini is currently unable to redeem “Gemini Earn” customer funds. The lawsuit was filed by the SEC while both companies were in the spotlight due to this situation.

RelationSEC sues Gemini and Genesis for securities law violations

In the past, the SEC has signaled that it will step up its crackdown on similar cryptocurrency yield programs.

In 2022, it fined major cryptocurrency lending platform BlockFi about ¥12.8 billion ($100 million) over interest-bearing accounts. Yield products that earn interest by depositing virtual currency are regarded as unregistered securities similar to investment trusts.

BlockFi has registered the product as a security with the SEC. There was also a positive evaluation of this, saying that it “clearly paved the way for regulatory compliance.”

BlockFi filed for bankruptcy in November 2022, and the SEC, which has the right to receive the settlement money for the interest-bearing accounts, is also listed as a creditor.

Relation: BlockFi settles with US SEC for 11.5 billion yen to register cryptocurrency interest-bearing account