TechFlow news, on August 9, according to DL News, a source familiar with the U.S. Securities and Exchange Commission (SEC) investigation revealed that the SEC has issued subpoenas to at least three cryptocurrency venture capital firms this year, signaling an intensification of its regulatory scrutiny over the crypto sector.
One of these subpoenas is titled "Regarding Certain Intermediary Activities in Crypto Asset Offerings," and SEC staff are investigating these matters to determine whether federal securities laws have been violated. The source indicated that the SEC's probe into crypto venture capital firms shows the agency is focusing on the early stages of crypto financing—specifically, the investors who provide initial funding to the majority of crypto startups.
At least two other cryptocurrency venture capital firms have received similar document requests asking for contracts related to any token transactions conducted by their investors. A lawyer for a crypto VC firm not affected by the subpoena described the investigation as an "overbroad fishing expedition" that is extremely costly.
