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TechCrunch Founder’s Crypto Fund Subpoenaed By SEC

According to the report’s, the U.S. Securities and Exchange Commission subpoenaed the cryptocurrency investment fund launched in 2017 by TechCrunch constitutor M. Arrington.

Talking to CNBC, Arrington confirmed the subpoena, which comes amid what is rumored to be a widening investigation into initial coin offerings (ICOs) by the U.S. securities regulator. However, it’s not fully clear, how wide-reaching the investigation is or when exactly it started.

Yet, Arrington’s revelation marks the second public confession of its kind, coming a day after e-commerce giant Overstock found out that it had received what it called a “voluntary” document request from the SEC in view of a token sale of its own.

“We received a subpoena. Every [crypto]fund I’ve talked to has received one,” Arrington told the network, going on to say:

“That’s fine. They just have to figure out what they want. They need to set up rules so we can all follow them, and the market is begging them for that.”

In November 2017, Arrington declared: Invest event in New York that he was raising $100 million for a hedge fund called Arrington XRP Capital.

The notes to CNBC come more than 14 weeks after a series of now-deleted tweets in which Arrington struck a critical tone regarding the SEC’s efforts.

“I’m not mad I’m terrified. These are blue chip deals with top law firms who checked every box they could think of. And the SEC is going after not just the companies but the investors,” he wrote in one post.

According to the yesterday’s report, the SEC has thus refused to comment on the scale and nature of the investigation. Sources state that the inquiry lasts back as far as last fall and that as many as 80 subpoenas have been sent out, though other evaluations ranged higher than that number.