SEC Subpoenas Three Crypto Venture Capital Firms

Aug 9, 2024, 03:52 PM

The U.S. Securities and Exchange Commission (SEC) has issued subpoenas to at least three crypto venture capital firms this year, signaling an intensification of its regulatory scrutiny on the cryptocurrency sector. The subpoenas are part of an investigation that suggests the SEC is now focusing on the initial stages of the crypto capital funnel, targeting investors who provide early funding to cryptocurrency startups. This move marks a significant shift in the SEC's approach, as it traditionally has not targeted venture capitalists in the crypto space.