The U.S. Securities and Exchange Commission has launched a sweeping inquiry into whether crypto exchanges have proper safeguards to prevent insider trading on their platforms.

According to a person with direct knowledge of the inquiry, the SEC has sent a letter to one major crypto exchange requesting information about how the platform protects users from insider trading facilitated through its network, but, this person believes the inquiry covers other exchanges as well.

The letter was sent following last month’s collapse of Terra’s UST stablecoin and governance token LUNA, when around $40 billion of investor wealth was wiped out. It’s unclear if other letters have been issued, but the person with direct knowledge said based on conversation with industry insiders the investigation is wide-ranging.

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