SEC Requests Information From 3 Crypto Funds

The US Securities and Exchange Commission (SEC) appears to be turning its attention to another important part of the cryptocurrency industry, investment funds.

According to DL News, the US Securities and Exchange Commission (SEC) has issued subpoenas to at least 3 crypto investment funds (VCs) as of now in 2024.

The source added that the nature of these subpoenas is to demand that VCs provide contracts and agreements on investment deals in the cryptocurrency sector, with the purpose of “serving the investigation of possible violations of securities laws”.

The latest developments show that after projects and companies in the industry, the SEC may soon turn its attention to investment funds, the main source of funding in the cryptocurrency sector.

Previously, BlockTower Capital founder Ari Paul revealed in July that the SEC was launching an investigation into VCs to clarify the relationship between the investment fund and the project, with the possibility of imposing securities arguments on it.

As reported, the SEC still has pending lawsuits in 2024 against Coinbase, Binance, Kraken, blockchain infrastructure developer Consensys, warnings against DEX exchange Uniswap and trading platform Robinhood. The SEC also imposed a $4.47 billion fine on Do Kwon and Terraform Labs, and $125 million on Ripple.

However, this financial regulator also received some failures such as having to end the securities investigation targeting Ethereum and "turn around" to approve an Ethereum ETF quickly, as well as ending the investigation into Paxos/BUSD and Stacks without further legal action.