The US Securities and Exchanges Commission has reportedly leaked personal information belonging to blockchain firm Green. SEC was investigating the startup’s purchase history.
SEC suspected of violating federal policy
As per a Washington Examiner news update, the SEC unintentionally released a series of personal data belonging to Green, a blockchain-based company. According to the report, Green has been a “decentralized power grid” manufacturer for several years.
The Washington Examiner also revealed that the leak violated US federal law and could get the watchdog into trouble. The data includes names and email addresses of about 650 people, and it reportedly might lead to Green’s blockchain nodes facing hacks. However, no hacking reports have popped up since the information leak news flash.
The SEC’s privacy act bans any sharing or disclosure of information belonging to entities under investigation. The watchdog’s website also states:
“If we store information about you in a system of records from which we retrieve that information by personal identifier <…> we will safeguard your information in accordance with the Privacy Act.”
US SEC rules on privacy
The above information classifies Green’s leak as a violation the agency could have to answer to when push comes to shove.
An SEC spokesperson already commented on the matter:
“Protecting the privacy of all parties is critically important, and the SEC is looking into this matter.”
SEC spokesperson in a comment to Washington Examiner
SEC looks to maintain a crypto watch
Nonetheless, the recent event doesn’t look like it will hold back the SEC from matters involving cryptocurrencies. The agency has primed itself into positions within the crypto regulation walls and is making its presence felt. SEC is part of the ongoing investigation into the fall of defunct crypto exchange FTX and its former CEO, Sam Bankman-Fried.
The former head of SEC’s enforcement division John Stark has warned the crypto industry of the watchdog’s supposed “regulatory onslaught.” Stark believes that the agency is yet to take larger strides into the market, although crypto enthusiasts are already feeling “suffocated” by SEC’s activities.
SEC bombarded crypto firms Gemini and Genesis with lawsuits for offering “unregistered securities” through the former’s lending program. Others like BlockFi and Coinbase have also faced the agency’s music, with the latter paying fines to regulators.
Stark has told crypto stans to “buckle up” for a more intense SEC watch.