The U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are investigating a $32 million deal between CrowdStrike Holdings Inc. and Carahsoft Technology Corp. The deal, finalized in 2023, involved the provision of cybersecurity tools to the Internal Revenue Service (IRS). However, the IRS reportedly never purchased the software, raising questions about the transaction's accounting and timing. The deal was closed on the last day of CrowdStrike's fiscal quarter, potentially impacting its financial results and stock performance. Investigators have been interviewing individuals and collecting records related to the transaction, including communications from the IRS, CrowdStrike, and Carahsoft employees. As early as last fall, SEC and DOJ investigators questioned former CrowdStrike employees involved in the deal. The FBI previously searched Carahsoft’s headquarters as part of a separate investigation. CrowdStrike has defended its accounting practices, while Carahsoft has declined to comment. The investigation also adds scrutiny to Carahsoft, which has faced separate inquiries related to its government dealings. CrowdStrike's shares fell as much as 6.5% following the news, after previously rising 10% post-results for the record quarter.