Cryptocurrencies
SEC Issues Subpoenas in Hunt for Fraudulent ICOs
- Regulator focused on firms it suspects of breaking the law
- Agency concerned some ICOs seeking funds for fake businesses
Photographer: Joshua Roberts/Bloomberg
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Expanding a broad crackdown on fraudulent initial coin offerings, U.S. regulators have sent a number of subpoenas to firms they suspect might be violating securities laws, said a person with direct knowledge of the matter.
The Securities and Exchange Commission has been concerned for months that some ICOs are raising money for businesses that don’t even exist. The agency has issued subpoenas to firms and individuals behind specific offerings that it believes might be breaking the law, said the person who asked not to be named because the investigations aren’t public.