The U.S. Consumer Financial Protection Bureau (CFPB) is reportedly proposing a refund requirement for digital assets following a slew of crypto hacks.
According to a new report by The Financial Times, the CFPB – which aims to protect consumers from unfair financial practices by institutions – is proposing a new rule that would mandate crypto firms refund money stolen from customers via exploits or hacks.
The report says that by proposing this new rule, the CFPB is extending the same protections traditional bank accounts have to the crypto wallets of crypto users.
If the rule is accepted, it would change the definition of “funds” to include any asset used to make payments and would force crypto wallet providers to compensate users if their funds are stolen.
Previously, data from market intelligence platform Chainalysis found that in 2024, crypto platforms lost a staggering $2.2 billion from hacks in 2024, a 20% increase from the previous year. Chainalysis also found that exploits significantly slowed down in the second half of 2024.
However, the firm also found that in 2024, North Korean hackers stole more digital assets than ever before. According to the data, North Korean hackers stole $1.34 billion worth of crypto assets in 2024 while in 2023, they stole $660 million.
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