While insider trading laws have traditionally been applied to stocks and bonds, the Securities and Exchange Commission (SEC) has made it explicitly clear that digital assets and token markets are now fair game for insider trading prosecution. The cryptocurrency industry, once considered the Wild West of finance, is now squarely in the insider trading crosshairs of U.S. regulators.

As the SEC continues enforcement in the crypto space for fraudulent conduct (although not for pure registration violations), anyone with access to nonpublic information about token launches, platform listings, or internal company developments may find themselves under SEC investigation for illegal insider trading.  If you are being investigated by the SEC or received a subpoena related to digital assets, you need an experienced SEC defense attorney on your side.

David R. Chase, Esq., a former SEC prosecutor and cryptocurrency insider trading lawyer, offers strategic legal representation for individuals and companies facing SEC scrutiny in the fast-evolving crypto sector.

Why the SEC Is Investigating the Crypto Industry

The SEC has made clear its intent to continue to regulate crypto markets where information asymmetry is achieved through a breach of duty leading to unfair trading advantage and/or market manipulation.  In recent years, the agency has launched enforcement actions targeting crypto exchanges, developers, insiders, and investors accused of trading on material, nonpublic information.

Common SEC Focus Areas in Cryptocurrency Investigations:

Recent SEC Enforcement in Crypto Insider Trading

While the legal landscape continues to evolve, the SEC has already taken notable action in the crypto industry. For example:

• In 2022, the SEC brought its first-ever insider trading case involving digital assets, charging a former Coinbase product manager with tipping off his brother and a friend about upcoming token listings. The case signaled the SEC’s willingness to extend traditional insider trading laws to the cryptocurrency arena.
• The agency has also pursued insider trading cases involving insiders trading based on nonpublic information concerning token viability or future, material disclosures.

These cases make clear that anyone with privileged access to information in the crypto space who trades or tips on such information is at risk of SEC scrutiny.

How David R. Chase, Esq. Can Help

If you are under investigation for insider trading or securities violations related to crypto assets, choosing the right attorney could determine the outcome of your case.

David R. Chase, Esq. is a nationally recognized and seasoned SEC defense attorney who brings a unique perspective to each case, having formerly served in the SEC’s Enforcement Division as a Senior Counsel.  His in-depth knowledge of the agency’s enforcement priorities and tactics allows him to craft a proactive and strategic defense for clients in the emerging crypto space.

Representation Includes:

Whether you’re a token issuer, platform employee, investor, or entrepreneur, David R. Chase, P.A. can help you navigate the SEC’s expanding insider trading reach in crypto enforcement.

Don’t Face the SEC Alone

As securities regulators continue to crack down on fraud in the cryptocurrency industry, anyone with inside knowledge of token movements, exchange listings, or platform events can become a target. The SEC is adapting quickly, and so must your defense if you have received a SEC subpoena or Wells Notification.

If you’re concerned about an ongoing investigation or have been contacted by the SEC regarding a crypto-related matter, call David R. Chase, P.A. at 800-760-0912 for a confidential consultation. Learn more at www.securitiesfrauddefense.net.

With your freedom, finances, and reputation on the line, trust a proven cryptocurrency insider trading lawyer with the experience to defend you.