200 Companies Under Investigation for Alleged Information Leaks Tied to Crypto-Related Stock Rallies

The U.S. Securities and Exchange Commission (SEC) along with the Financial Industry Regulatory Authority (FINRA) are currently examining more than 200 publicly listed companies for possible insider trading and breaches of Regulation Fair Disclosure (Reg FD) related to their strategies involving cryptocurrency holdings. These investigations are centered on irregular trading activity detected in the periods leading up to announcements by these companies regarding their intentions to invest in

, , or other digital currencies. Authorities have noticed significant jumps in share prices and unusual trading volumes in several instances, prompting concerns about selective information sharing or unauthorized leaks of confidential data.

According to reports from the Wall Street Journal and Reuters, these inquiries reflect a rising pattern of public firms turning to crypto-treasury strategies—raising funds to acquire digital assets either as a safeguard against inflation or to emulate the achievements of companies such as MicroStrategy. Collectively, over 200 companies have amassed upwards of $100 billion for crypto acquisitions in 2025. Nevertheless, the SEC and FINRA are closely reviewing whether these disclosures complied with Reg FD, which requires that all investors receive equal access to important information. Dozens of companies have received official notices cautioning them against actions that might be considered market manipulation.

Some of the questionable activities involve companies like

& Technology Group, , and , whose share prices experienced notable increases ahead of their crypto investment disclosures. For example, Bitmine’s stock soared from $4.67 to $46.58 within a week after revealing its Ethereum treasury initiative, marking a 1,000% rise. Such dramatic price movements have led regulators to investigate trading records for signs of leaks and to review broker-dealer communications for evidence of sharing confidential information. David Chase, a former SEC enforcement attorney, remarked that these letters often represent the “initial phase” of a formal investigation.

Regulators are also paying attention to the inherent risks in corporate crypto treasuries. The “mNAV flywheel” approach—where increasing share prices allow for more crypto purchases, which in turn boosts market confidence—has been adopted by companies like MicroStrategy. However, this model can become unstable if the market value (mNAV) drops below 1, potentially leading to rapid sell-offs and a loss of investor trust. With more than 194 public companies now collectively holding over 1 million BTC (worth $110 billion), the sector’s swift expansion has brought greater regulatory attention to issues of compliance and transparency.

Legal specialists caution that these investigations may lead to significant changes in how corporations approach crypto strategies. Venture capitalist Mike Dudas described the current situation as a “brewing bloodbath,” emphasizing the need for tougher enforcement to rebuild confidence in the industry. Regulators are also probing whether insider trading laws have been broken, especially in cases where insiders or their associates may have acted on leaked information. These ongoing probes highlight the difficulties of maintaining both innovation and market fairness in an industry characterized by high volatility and shifting regulations.

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