Media: SEC opens probe into insider trading on crypto exchanges.

The United States Securities and Exchange Commission (SEC) has opened an investigation into insider trading on cryptocurrency exchanges. The report comes from FOX Business.

A source familiar with the SEC’s work said the regulator requested information from one of the major platforms about measures to combat such practices. The source said that similar notices were sent to other exchanges.

The publication claims the Commission began the inquiry after the collapse of the Terra ecosystem. In early June, media reported the начатом SEC расследовании в отношении алгоритмического стейблкоина TerraUSD (UST).

A partner at Hogan & Hogan, Jeremy Hogan, told the publication that the regulator’s request “makes sense, given the SEC’s recent emphasis on regulating exchanges to protect consumers.”

In September 2021 Bloomberg reported that the CFTC planned to investigate Binance for insider trading and market manipulation.

In the same month, the leading NFT marketplace OpenSea terminated the employment of an unnamed employee involved in the schemes. This coincided with the departure from the company of the platform’s Chief Product Officer Nate Chastain — previously one of Twitter users had suspected him of using listing data on the homepage for personal gain.

In June 2022 authorities accused Chastain of fraud and money laundering in an insider-trading scheme on the NFT marketplace. He could face up to 40 years in prison.

Earlier this spring, The Wall Street Journal reported on a group of investors who earned substantial profits from insider information about forthcoming listings on Binance, Coinbase and FTX.

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