The US Securities and Exchange Commission (SEC) has launched an investigation into insider trading on cryptocurrency exchanges. FOX Business writes about it.

A source familiar with the SEC’s activities said the regulator had requested information from one of the key platforms on measures to tackle such practices. According to the correspondent, other exchanges received a similar notification.

The publication claims that the Commission began an investigation after the collapse of the Terra ecosystem. Earlier in June, the media reported on the SEC investigation into the algorithmic stablecoin TerraUSD (UST).

Jeremy Hogan, partner at law firm Hogan & Hogan, said the regulator’s request “makes sense given the SEC’s recent focus on regulating exchanges to protect consumers.”

In September 2021, Bloomberg announced its plans CFTC Check out Binance for insider trading and market manipulation.

That same month, leading NFT marketplace OpenSea terminated a business relationship with an unnamed employee involved in the fraud. This moment coincided with the departure of marketplace product director Nate Chastain from his company – a previous Twitter user suspected that he was using data on the placement of tokens on the homepage to his advantage.

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

Recall that The Wall Street Journal wrote in the spring about a group of investors making substantial profits thanks to insider information about upcoming listings on Binance, Coinbase, and FTX.