The U.S. Securities and Exchange Commission (SEC) has reportedly subpoenaed at least three crypto venture capital firms in 2024.
Citing a source familiar with the matter who wished to remain anonymous, DL News reports that three crypto VC firms received identical subpoenas from the SEC requesting any contract of token deals with investors.
“The staff of the United States Securities and Exchange Commission is conducting an investigation relating to the above-referenced matter to determine if violations of the federal securities laws may have occurred.”
The source close to the matter says the SEC is probing whether crypto venture capital firms are acting as statutory underwriters – entities that purchase digital assets with the intent of reselling them to the public.
Venture capital firms often invest in digital asset startups and are rewarded with the projects’ tokens. In most cases, some tokens are issued upon investment with more being released through scheduled unlocks.
New crypto projects are allowed by the SEC to sell unregistered securities in the form of tokens to accredited investors, meaning they can sell their coins to VC firms, but not to the general public.
“The accredited investor concept identifies investors who are eligible to participate in those offerings of unregistered and illiquid securities.”
The SEC appears to be looking at whether crypto VC firms are serving as agents who participate in the public sale and release of unregistered securities.
Says the source,
“It poisons the initial issuance.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Credit: Source link
