SEC, FINRA Probe Suspicious Trading Before Crypto-Treasury Announcements
The SEC and FINRA have launched an investigation into suspicious trading activity before publicly traded companies announced plans to acquire crypto.
Regulators believe some investors may have profited from having prior, non-public knowledge of these crypto-treasury announcements, potentially violating fair disclosure rules.
Possible Breach of Fair Disclosure Rules
The investigation focuses on publicly traded digital asset treasury (DAT) firms, which are companies that declare plans to acquire capital and buy cryptocurrencies. More than 200 DATs went public this year, and some of them are currently in contact with regulators.
Regulators identified “suspicious trading patterns”, including high trading volume spikes…
