<![CDATA[<figure class="image"><img src="https://cimg.co/news/124676/329314/cftc-media-library-origin.jpg" srcset="" width="" class="content-img" alt=""><figcaption>Source: Adobe</figcaption></figure>Christy Goldsmith Romero, commissioner of the&nbsp;Commodity Futures Trading Commission (CFTC), has proposed the creation of a federal fraud database that would allow investors to identify individuals with bad reputations.&nbsp;The registry aims to provide investors and law enforcement with easy access to information regarding past financial fraud convictions and civil fines, according to a&nbsp;<a href="https://www.reuters.com/markets/commodities/us-cftc-official-pushes-national-financial-fraud-database-2023-09-11/">report from Reuters</a>.&nbsp;It would be a centralized and searchable database of financial misconduct, allowing the public to guard against fraudulent activities.Goldsmith Romero emphasized the need for such a comprehensive record that individuals can easily check before entrusting their money, trust, and business to others.&nbsp;<h2 id="national-fraud-database-to-benefit-both-public-and-regulators">National Fraud Database to Benefit Both Public and Regulators</h2>While some regulators maintain databases of disciplinary actions or consumer complaints, there is currently no national database that allows for efficient cross-referencing across federal agencies and state regulators."It&rsquo;s really heartbreaking when you talk to people who become victims," she said during a speech Monday in San Diego.<blockquote>"This is about getting information out for people to arm themselves because it&rsquo;s really hard to get money back for victims in fraud cases. So it&rsquo;s better if we can stop it from happening in the first place."</blockquote>The creation of a centralized registry would not only facilitate public access to information but also enable the government to identify repeat offenders and act as a deterrent to potential fraudsters.&nbsp;Goldsmith Romero initially proposed the registry several years ago while overseeing a crucial financial crisis bailout program in 2009.&nbsp;Since joining the CFTC as a commissioner in March 2022, she has revived the idea, highlighting its relevance to the cryptocurrency sector.<h2 id="goldsmith-romero-mentions-prevalence-of-fraud-in-crypto">Goldsmith Romero Mentions Prevalence of Fraud in Crypto</h2>Goldsmith Romero also mentioned the prevalence of fraud in the crypto space and the fragmented nature of available information in an interview with Reuters.&nbsp;"This was something I was thinking about again recently with respect to crypto," she said.<blockquote>"We know that fraud is massively present in the crypto space, but there's so much disjointed information to people to try to get to."</blockquote>However, Goldsmith Romero acknowledged the challenges associated with establishing such a database.&nbsp;Identifying a single agency to host the registry and securing the necessary initial funding would pose significant hurdles.&nbsp;Nevertheless, her proposal seeks to address the disjointed information landscape and promote investor protection in an era where fraud remains a significant concern.The call for a fraud database comes as crypto hacks remain a major issue in the world of digital assets.&nbsp;So far this year, Web3 platforms have&nbsp;<a href="https://cryptonews.com/news/web3-loses-12-billion-hacks-rug-pulls-so-far-2023-report.htm">lost over $1.2 billion</a>&nbsp;in hacks and rug pulls, according to a report from Web3 bug bounty platform Immunefi.The report revealed a total of 211 separate incidents contributing to this massive sum, with the month of August alone accounting for $23.4 million in losses.
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CFTC Commissioner Calls for Fraud Database to Allow Investors to Identify Bad Actors

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