The Securities and Exchange Commission (SEC) in America is reportedly investigating Binance’s launch of their BNB coin in 2017. They are concerned that the token should have been released to the public as security.
According to unnamed sources who talked to Bloomberg, the SEC is also looking at market making companies owned or partially owned by Binance Founder and CEO Changpeng Zhao, which do business with Binance.
One such entity, Binance.US, is under investigation to find out whether it is truly independent of Binance, and whether employees have been conducting insider trading.
While refusing to directly respond to the allegations reported, a Binance spokesperson told CoinDesk, “As the industry has grown at a rapid pace, we have been working very diligently to educate and assist law enforcement and regulators in the US and internationally, while also adhering to new guidelines. We will continue to meet all requirements set by regulators.”
Binance is currently under investigation in America by the Justice Department, the Commodity Futures Trading Commission (CFTC), and the Internal Revenue Service.
Binance, the world’s largest cryptocurrency exchange, does not consider itself domiciled in any single country.
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