SEC Launches Inquiry Into Insider Trading at Crypto Exchanges: Report

The agency has sent a letter to at least one major crypto exchange asking about its safeguards, according to Fox Business.

AccessTimeIconJun 14, 2022 at 9:16 p.m. UTC
Updated Jun 15, 2022 at 7:38 p.m. UTC

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

The U.S. Securities and Exchange Commission (SEC) has begun an investigation into whether crypto exchanges have sufficient protections against insider trading, according to Fox Business, which cited a source with direct knowledge of the inquiry.

  • The source said the SEC had sent a letter to a major crypto exchange asking about the kinds of protections it has in place against insider trading. The inquiry is meant to cover additional exchanges as well, according to the source.
  • The letter was sent after the collapse last month of Terra’s UST stablecoin and the associated LUNA token, according to the report.
  • The SEC did not immediately respond to a request for comment on the Fox News report.
  • The SEC is also reportedly looking into whether Terraform Labs, the company behind UST and LUNA, violated U.S. laws in its marketing of the cryptocurrencies.

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Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.