- The SEC may investigate Binance for possible insider trading, according to reports.
- SEC probe into exchange insider trading might cause the markets to fall much lower.
Insider trading on crypto exchanges will be investigated by the US Securities and Exchange Commission (SEC), according to Fox Business reporter Eleanor Terrett. The Fox News reporter added that the SEC has already issued letters to the top crypto exchanges requesting information on the absence of insider trading safeguards. She said that “industry sources” had informed her of the SEC’s intention to look into insider trading in cryptocurrency exchanges. Regulators, says Eleanor, are a way for the SEC to safeguard investors.
🚨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.
— Eleanor Terrett (@EleanorTerrett) June 14, 2022
Could Dent the Already Affected Market
The Securities and Exchange Commission (SEC) has already taken action against several of the most popular cryptocurrency exchanges in the industry. In the past, the SEC has required that all cryptocurrency exchanges register and promptly submit financial data. Gary Gensler, the SEC’s Chairperson, has previously aimed at cryptocurrency exchanges for trading against their consumers.
The SEC may investigate Binance for possible insider trading, according to reports. According to rumors, the SEC aims to look into any insider trading by Binance personnel. There is no evidence to support any of these accusations, so we will have to wait and see whether the SEC confirms or denies any of these allegations.
It’s a slaughter now that Bitcoin has dropped below the $25,000 threshold for the first time since December 2020. Even the ten most valuable currencies have lost more than 60% of their value from their all-time highs in 2021.
SEC probe into crypto exchange insider trading might cause the markets to fall much lower if it uncovers overwhelming proof of illegal conduct. However, one will have to wait and see how things play out over the next several weeks.