US Regulatory Agency Investigates Cryptocurrency Reserves (DAT) Company for Insider Trading Accusations

BlockBeats News, September 26th, according to WSJ report, sources familiar with the matter revealed that U.S. financial regulators have launched investigations into unusual trading patterns by companies seeking to add cryptocurrency purchases as part of their core corporate strategies.

The U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority have contacted some of the 200+ companies that announced this year they would adopt a cryptocurrency reserve strategy, expressing concerns in letters about abnormally high trading volumes and sharp increases in stock prices a few days before announcements were made to the public.

Officials warned that companies may have violated the Fair Disclosure Rule. Lawyers said such letters often mark the beginning of a deeper insider trading investigation. Cryptocurrency Reserve (DAT) companies have surged in number over the past few months, with their strategy mirroring that of MicroStrategy (MSTR.O), raising funds through stock and bond offerings to purchase Bitcoin and other digital tokens.