SEC begins insider trading investigation on crypto exchanges
The U.S. Securities and Exchange Commission (SEC) has launched a detailed inquiry into whether a handful of crypto exchanges have legitimate safeguards to prevent insider trading on their platforms, as FOX Business News reported on June 15.
As indicated by an individual with direct information on the inquiry, the SEC has sent a letter to one significant crypto exchange mentioning information about how the exchange shields its customers from insider trading worked through its network, yet, this individual accepts the inquiry covers different exchanges too.
The letter was sent following last month's breakdown of Terra's UST stablecoin and governance token LUNA when around $40 billion of investor money was cleared out. It's muddled on the off chance that different letters have been given, yet the individual with direct information expressed in light of discussion with industry insiders the inquiry is colossal.
The SEC did not respond to numerous requests for comment. Press officials from the greatest crypto trades, including Binance, Coinbase, FTX, and Crypto.com also declined to make any comment.
It is not set in stone assuming that the inquiry is being driven by the SEC's enforcement division or Office of Compliance Inspections and Examinations, which frequently leads to preliminary assessments of areas of administrative interest. The enforcement division’s inquiry would flag the SEC is stressed over possibly serious regulatory infringement.
The move comes amid one more immense turmoil in crypto and more prominent scrutiny by controllers over the nascent market. As of late, the crypto market has been in total implosion mode; the price of the most popular digital coin, Bitcoin, lost almost 33% of its worth in the previous week and is down 70% from its November all-time high.
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