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Another important regulatory move in the crypto-investment ecosphere. New York Attorney General Eric Schneiderman launched an investigation into crypto-exchanges, his office announced. He’s looking into thirteen major exchanges, including Coinbase, Gemini Trust, and Bitfinex, requesting information on their operations and what measures they have in place to protect investors.

The investigation is another attempt to shed more transparency on how crypto-exchanges fight market manipulation attempts and suspicious trading, as well as bots, theft, and fraud. Some of the crypto-exchanges such as Beijing-based Huobi, have headquarters located outside the US, but the attorney general has jurisdiction over any foreign business operating in New York.

Exchanges have been subject to market manipulation, robberies, and more. In February, some Coinbase users noted that they were getting double charged for legitimate transactions and their accounts were being emptied, which resulted in overdraft fees. Mt. Gox, an exchange in Japan, infamously had all of its bitcoin slowly drained out of its accounts by a hacker and had to file for bankruptcy in February 2014 as a result.

Regulators across different jurisdictions are tightening up on their policies. The US Congress has held a hearing with Coinbase and think tank Coin Center to gain a better understanding of the topic, and the SEC issued subpoenas to cryptocurrency companies and individuals in February.

That’s all good news for investors that have been cheated many times via fraudulent ICOs, Ponzi schemes, and exchange manipulations


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