SEC Probes Crypto Treasury Firms Over Suspicious Trading Activities

U.S. regulators are intensifying scrutiny of digital asset treasury firms following reports of unusual trading patterns tied to cryptocurrency acquisitions. The Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) are examining whether insiders profited from nonpublic information, according to a Wall Street Journal report.

Investigators have identified abnormal trading volumes and price movements preceding corporate crypto announcements. "This is exactly the type of enforcement needed to restore trust in digital markets," said venture capitalist Mike Dudas, who described the situation as a potential "brewing bloodbath" for violators.

While specific firms remain unnamed, the probe focuses on potential front-running of market-moving disclosures. Regulators have reiterated requirements for uniform disclosure of material information, warning against selective sharing that could enable insider advantages.