US regulatory investigation into cryptocurrency strategic reserve company suspected of insider trading

According to the Wall Street Journal, people familiar with the matter have revealed that US financial regulators have launched an investigation into unusual trading patterns in the shares of companies that have tried to make buying cryptocurrencies a core corporate strategy. The Securities and Exchange Commission and the Financial Industry Regulatory Authority have contacted some of the more than 200 companies that have announced plans to adopt cryptocurrency reserve strategies this year, raising concerns in letters about unusually large trading volumes and sharp increases in share prices in the days leading up to the announcements. Officials have warned companies that they may be violating the Fair Disclosure Rules. Lawyers say such letters often mark the start of a deeper investigation into insider trading. Companies announcing cryptocurrency reserve strategies have proliferated in the past few months, following the example of Strategy (MSTR. O), which raises funds through the issuance of shares and bonds to buy bitcoin and other digital tokens.