The largest liquidation event in crypto history saw $19 billion wiped out after Trump’s tariff announcement. Insider trading suspicions arose when a trader made $160 million on a short position before the crash. The crypto market’s vulnerability to manipulation highlights the need for regulation to prevent such occurrences.

The history of financial markets is rife with unpunished insider trading instances, including during the global financial crisis. Despite investigations, few convictions were made due to outdated laws. Regulations like Rule 10b5-1 in the US have created loopholes rather than addressing the sophisticated market landscape, leaving insider trading unchecked.

Enforcement against insider trading, especially in new areas like digital assets, needs to be swift and comprehensive. Laws must be updated to cover a wider range of investment instruments and strengthen disclosures and cooling-off periods for public officials. Regulators must act decisively to restore trust in both traditional and crypto markets.

Read more at Cointelegraph: Insider Trading Is An SEC Country Club Looking For A Scapegoat