Consumer complaint received 2023-07-17
Company: Foris DAX, Inc.
State: NJ
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Fraud or scam

Complaint:
I need justice for breaking regulator policies- XXXX XXXX XXXX XXXX XXXX orders. 

I am writing to express my deep disappointment with the way crypto.com handles consumers ' disputes and we need the justice from Crypto.com I want to mention that I already reached you a lot of times asking you to take responsibility for failing to prevent the fraud that took place utilizing your platform from occurring. 

I am in serious concern regarding the recent revelation that Crypto.com has received a warning from the XXXX XXXX XXXX XXXX XXXX XXXX XXXX for violating XXXX XXXX XXXX XXXX XXXX  regulations. This information has come to my attention, and it is essential that I highlight its relevance to my own situation, in which Crypto.com allowed unauthorized transactions to proceed, resulting in financial loss. 


Coinciding with the proliferation of cryptocurrencies in mainstream society, XXXX XXXX has introduced several bills aimed at providing more clarity to the emerging sector. The bipartisan introduced Responsible Financial Innovation Act ( RFIA ) is designed to provide regulatory clarity for agencies charged with supervising digital asset markets, provide a strong, tailored regulatory framework for stablecoins, integrate digital assets into existing tax and banking law, and spur innovation in the field of digital assets. 



The XXXX XXXX released an XXXX XXXX ( XXXX ) outlining an approach to address risks stemming from the growth of digital assets and blockchain technology while supporting responsible innovation. The XXXX focuses on XXXX key priorities : ( 1 ) consumer and investor protection ; ( 2 ) financial stability ; ( 3 ) illicit finance ; ( 4 ) U.S. leadership in the XXXX XXXX XXXX  and XXXX XXXX  ; ( 5 ) financial inclusion; and ( 6 ) responsible innovation. 


Under the Bank Secrecy Act ( the BSA ), XXXX regulates XXXX  On XX/XX/XXXX, XXXX issued guidance that stated the following would be considered XXXX XXXX ( i ) a virtual currency exchange; and ( ii ) an administrator of a centralized repository of virtual currency who has the authority to both issue and redeem the virtual currency. XXXX issued guidance that stated as follows : An administrator or exchanger that ( 1 ) accepts and transmits a convertible virtual currency or ( 2 ) buys or sells convertible virtual currency for any reason is a money transmitter under XXXX regulations, unless a limitation to or exemption from the definition applies to the person. See XXXX, Application of XXXX  Regulations to Persons Administering, Exchanging or Using XXXX XXXX ( XX/XX/XXXX ). 


An XXXX that is a money transmitter must conduct a comprehensive risk assessment of its exposure to money laundering and implement an XXXX XXXX XXXX  XXXX XXXX program based on such risk assessment. XXXX regulations require XXXX to develop, implement, and maintain a written program that is reasonably designed to prevent the XXXX from being used to facilitate money laundering and the financing of terrorist activities. The XXXXXXXX XXXX must : ( i ) incorporate written policies, procedures and internal controls reasonably designed to assure ongoing compliance ; ( ii ) designate an individual compliance officer responsible for assuring day-to-day compliance with the program and BSA requirements ; ( iii ) provide training for appropriate personnel, which specifically includes training in the detection of suspicious transactions ; and ( iv ) provide for independent review to monitor and maintain an adequate program. 


All U.S. persons are prohibited from doing business with foreign nationals who are on the XXXX XXXX XXXX XXXX XXXX Entities List ( XXXX XXXX XXXX of the U.S. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX ). XXXX provides an updated and searchable version of its XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX requires all U.S. citizens to block ( i.e., freeze ) the assets of individuals and companies who are engaging in transactions with ( i ) countries that are subject to U.S. XXXX XXXX, ( ii ) certain companies and entities that act as agents for such countries, and ( iii ) certain individuals that act as agents for such countries. It is important to have a compliance program in place to avoid ( or mitigate ) receiving civil and criminal penalties from XXXX for non-compliance. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX ( XX/XX/XXXX ). 
I request that Crypto.com conduct a thorough investigation into my case and take appropriate measures to rectify the situation. 

This should include : A comprehensive review of the unauthorized transactions and associated accounts involved in the fraudulent activity. 

A transparent explanation of how Crypto.com 's XXXX violation may have impacted the security and integrity of customer accounts and transactions. 

A commitment to compensating affected customers for any financial losses incurred as a direct result of Crypto.com 's failure to adequately protect their funds and prevent unauthorized transactions. 

Thank you in advance for your assistance. 

Respectfully, XXXX XXXX Phone : XXXX Address : XXXXXXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation