According to BlockBeats, on August 9, DL News cited people familiar with the matter as saying that the U.S. Securities and Exchange Commission has subpoenaed at least three crypto venture capital firms this year.

Sources said at least two other crypto VCs received essentially the same document requests, which reportedly asked whether cryptocurrency venture capital firms had contracts requiring investors to sign any token transactions.

The SEC’s investigation into crypto VCs suggests that the agency is now investigating whether violations of federal securities laws have occurred in the crypto limelight.

In July of this year, BlockTower Capital executive Paul said in a podcast that the SEC's investigation was due to its suspicion that crypto VCs may have acted as marketers of tokens.