The U.S. Securities and Exchange Commission (SEC) initiated an investigation into insider trading on cryptocurrency exchanges.
A source familiar with SEC activities said that the regulator requested information from one of the major platforms about measures to combat such practices. According to the source, other exchanges also received similar notification.
The publication claims that the Commission began an inspection after the collapse of the Terra ecosystem. In early June, the media reported on an investigation launched by the SEC into the algorithmic stablcoin TerraUSD (UST).
Hogan & Hogan law firm partner Jeremy Hogan said in a comment to the publication that the regulator’s request “makes sense given the SEC’s recent emphasis on regulating exchanges to protect consumers.”