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SEC Investigation on cryptocurrency

SEC Investigation: 'Dozens' of exchanges under investigation

Top four crypto exchanges are being investigated as part of Commodity Futures Trading Commission(CFTC). The reason being, the four crypto-exchanges refused to share the trade data with the CME group for its recently launched Bitcoin future plans. These exchanges are suspected to be manipulating the data via traders. This is being done with a plan to affect the price of bitcoin to reap better ROI. Not letting this happen is CFTC’s responsibility.

Just because the investigation is on doesn’t mean something is wrong. It's just an investigation, as the CEM group says. The fact that the four exchange companies refused to share the trade data, gave birth to great suspicions to CEM group. The four top exchanges in the investigation are Kraken, Coinbase, BitStamp, & itBit.

The actual problem that caught CME group’s attention was the fact that many investors were manipulating the data via these exchanges. Monitoring these activities is what CME group does. Now that the exchanges are under investigation, the results will bring a larger degree of change in the cryptosphere. There will be new rules in place that would strictly govern the exchange businesses thoroughly.

SEC, Co-director, Stephanie Avakian confirmed the rumor about this investigation stating there are a lot of ICOs under investigation.

“We are very active, and I would just expect to see more and more,” Avakian said at an Investment Adviser Association conference in Washington, according to a report in Bloomberg Law. “We’re doing obviously a lot in the crypto space, and we’re seeing a lot in the crypto space,” Avakian said in an interview

Furthermore, in early March, SEC had already issued 80 subpoenas to ICO operators & advisers. This was to investigate whether or not these ICO operators & advisers had violated any federal laws serving unregistered offerings.


One of those many is OverStock, who’s child company tZero was attempting to raise $250 million through an ICO. The company upfront acknowledged that their token sale was under investigation. Furthermore, Patrick Byrne, CEO of tZero, said that they were voluntarily complying with the investigation. Also, they hadn’t received any subpoena.

Additionally, the company has filed a complaint stating the problem the business is facing. Not only the ICO is being affected, their e-commerce retail business is also losing its market.SEC is investigating a lot of exchanges including current ICOs against manipulating of markets. Which they call an unlawful activity. There has been no report of any action taken yet. Since there are a lot of steps & protocols to follow, it is going to take time and the companies that are being investigated will have to undergo all this.

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