SEC, FINRA Investigate Leaks Before Crypto Treasury Moves

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Were corporate crypto plans leaked to select traders? The SEC and FINRA are investigating precisely that, according to a Wall Street Journal report.

The regulators are scrutinizing suspicious trading patterns in the stocks of companies right before they publicized intentions to add cryptocurrency to their balance sheets.

The investigation targets unusual activity, including sudden spikes in trading volume and stock prices, suggesting some investors may have had advance knowledge.

The SEC has warned companies involved about potential breaches of Regulation Fair Disclosure, a rule designed to ensure all investors receive material information simultaneously. The probe casts a shadow over the rapidly growing trend of corporate crypto treasury management.