SEC Investigating Insider Trading on Crypto Exchanges

Vinod Dsouza

The U.S. Securities and Exchange Commission (SEC) will begin investigating insider trading in crypto exchanges, revealed Fox Business journalist Eleanor Terrett. The Fox News producer stated that the SEC has already sent letters to leading crypto exchanges asking for details on the lack of insider trading safeguards. She revealed that SEC planning to investigate insider trading in crypto exchanges was made available to her by “industry sources.”

“SCOOP: Industry sources with knowledge of the matter tell me the SECGov has sent letters to several crypto exchanges inquiring about a lack of insider trading safeguards,” tweeted Eleanor.

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The SEC says it wants to protect investors by enacting regulations, as per Eleanor. Watcher Guru reached out to Eleanor Terrett for more information but the journalist did not respond during publication time.

This is not the first time that the SEC has come after leading crypto exchanges in the market. The SEC had previously requested that all crypto exchanges register and report financial data on a timely basis. Gary Gensler, Chairperson of the SEC had also lashed out against crypto exchanges previously for trading against its users.

It is reported that the SEC is considering looking into Binance for insider trading. The SEC also plans to include Binance employees under its investigations for insider trading, reports claim. However, none of these claims are confirmed and we will have to wait and watch for an official confirmation from the SEC about its investigations against crypto exchanges for insider trading.

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SEC Could Damped The Crypto Market Further?

The market is experiencing a bloodbath after Bitcoin fell below the $25,000 mark for the first time since December 2020. Even the top 10 coins are down more than 60% from their all-time highs which they reached in 2021.

If the SEC announces an investigation of insider trading in crypto exchanges and finds daunting evidence of criminal activity, the markets could crash further. However, we will have to wait and watch how things unfold in the coming weeks.

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