The SEC is currently in the process of scrutinizing cryptocurrencies and other financial markets moving forward. Throughout the year 2018 – to date – the agency has undertaken a lot of noteworthy actions. According to its latest report, the following enforcement actions will only become more apparent over time.
The concept of cyber-related misconduct comes in many different shapes and sizes throughout 2018. The SEC is keeping tabs on many different aspects in this regard, although that appears more than warranted given the current market circumstances. The SEC has cracked down on companies misleading investors, fraudulent ICOs, and securities fraud.
Some notable examples include cracking down on a potentially fraudulent ICO valued at $32m, as well as cracking down on Titanium Blockchain Infrastructure Services. There are a lot of other projects currently still under investigation as well, but it seems the SEC is not taking kindly to any firm which is not behaving as one would expect.
#3 Ponzi Schemes
It is not abnormal to see the SEC crack down on Ponzi Schemes in this day and age. Various charges have been filed against companies and their associated staffers for defrauding investors. Some of the projects being shut down raised as much as $1bn or more, further confirming the agency is looking well beyond just fraudulent cryptocurrency ventures.
#2 Insider Trading
Although the SEC has not charged anyone with insider trading pertaining to cryptocurrencies, there are still plenty of concerns something malicious may be brewing behind the scenes. Throughout 2018, the agency has filed charges against 56 individuals misappropriating and unlawfully trading on material and nonpublic information.
#1 Disclosure Issues
Perhaps the most pressing problem in the financial sector today is how disclosure issues and auditor misconduct become a lot more apparent. A total of 54 entities and 94 individuals were charged by the agency. These charges span issues with financial reporting pertaining to revenue, expenses, faulty valuation, and so forth. A very major problem which cannot be allowed to spread any further.
One of the individuals getting a slap on the wrist is Elon Musk. The SEC isn’t too pleased with his Tweets pertaining to Tesla privatization. Various public accounts were also charged for their alleged participation to use confidential information. No cryptocurrency incidents were reported in this department, which is somewhat of a promising sign first and foremost.