U.S. Regulators Investigate Stock Moves Before Crypto Treasury Announcements

U.S. Regulators Investigate Stock Moves Before Crypto Treasury Announcements

U.S. regulators have launched investigations into suspicious trading activity in company stocks that surged just before announcements about major crypto treasury holdings. According to Reuters and the Wall Street Journal, the probes are looking at whether insiders leaked information about planned Bitcoin purchases. 

Over the past year, multiple public companies have adopted a “crypto treasury” model, buying Bitcoin or other tokens as part of their balance sheet strategy. These announcements often drove sharp rallies in stock prices. Regulators suspect some traders may have acted on advance knowledge, raising concerns about insider trading and market manipulation.

The outcome of the investigation could have major consequences. If regulators prove wrongdoing, penalties could be severe and rules around disclosure may tighten. For now, companies with crypto treasury strategies are under pressure to show transparency, while investors are being reminded of the risks when speculation blurs with corporate governance.