Target? or an excuse? SEC launches investigation into cryptocurrency funds
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The U.S. Securities and Exchange Commission kicks in
According to Bloomberg, three anonymous sources told them that the U.S. Securities and Exchange Commission has recently begun sending information requests and subpoenas to several cryptocurrency hedge funds. Funds Protection Requirements.
These information requests were issued by the SEC's Office of Compliance Inspections and Investigations. It is reported that if they find any wrongdoing, they will submit their findings to the enforcement unit of the US Securities and Exchange Commission. In fact, some cryptocurrency hedge funds have received subpoenas from the US Securities and Exchange Commission’s law enforcement department, and some fund companies may be punished if necessary.
Peter Van Valkenburgh, director of research at Coin Center, a cryptocurrency research organization in Washington, also just participated in the U.S. Congress’s “Examining the Cryptocurrency and ICO Market” hearing, he said:
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ICO is the goal? or an excuse?
In fact, the US Securities and Exchange Commission has issued similar subpoenas against some cryptocurrency exchanges before, and this time, they aimed at cryptocurrency hedge funds. They are also asking to see whether hedge funds have properly disclosed any potential conflicts of interest, such as whether fund managers have personalities holding initial coin offering investment products, the sources said.
It is reported that the U.S. Securities and Exchange Commission has issued a subpoena to at least one hedge fund company, asking them to clarify whether they have invested in ICOs. And in another case, SEC enforcement attorneys also questioned an investment bank about its participation in a token sale transaction. In addition, some companies are also trying to confuse concepts and try to bypass ICO regulation through the so-called "Simple Agreement for Future Tokens (SAFT)".
Apparently, the SEC's "crackdown" seems to have focused on ICOs, and perhaps they'll be able to spot some new problems in cryptocurrency funds.
