Several small-cap companies, including MEI Pharma and SharpLink, have seen stock surges before revealing major crypto investments, prompting scrutiny over potential insider trading activities.
Shares of MEI Pharma and other small-cap companies surged before major cryptocurrency acquisitions were disclosed, raising concerns about insider trading. The suspicious stock movements occurred ahead of announcements about $100 million Litecoin purchases and $425 million Ethereum allocations, with experts noting patterns linked to insider knowledge. Companies like CEA Industries and Verb Technology have responded by withholding ticker symbols to limit price distortions. While insider trading laws are clear in traditional finance, crypto-related treasury strategies complicate enforcement due to decentralized assets and volatile pricing.