SEC launches probe into insider trading in exchanges
The Securities and Exchange Commission has reportedly launched a probe into insider trading at major crypto exchanges
By Shashank Bhardwaj
The United States Securities and Exchange Commission (SEC) has reportedly launched an investigation into whether crypto exchanges are doing enough to prevent insider trading. The commission could be conducting routine checks on the exchange in question, or it could be looking for specific compliance violations to prosecute.
According to a person with direct knowledge of the inquiry, the regulator sent a letter to an unnamed major crypto exchange requesting information on how the company protects users from insider trading facilitated through its platform. According to the source, the investigation includes a number of other exchanges. The letter was sent following the collapse of Terra's UST stablecoin and the associated LUNA token last month.
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