Cryptocurrency exchange giant Binance is reportedly under investigation by the US Securities and Exchange Commission (SEC), which is investigating the sale of the crypto company’s native coin BNB.
- According to a Bloomberg report on Monday (June 6, 2022), the US watchdog is investigating Binance’s initial coin offering (ICO) in 2017 to investigate whether the exchange’s BNB tokens were sold as an unregistered security. went or not.
- Anonymous sources reported that the SEC investigation into BNB token “could be months away from any conclusions.” Although the commission has yet to issue an official statement, a Binance spokesperson said:
“It would not be appropriate for us to comment on our ongoing interactions with regulators, including education, support and voluntary responses to information requests. We will continue to meet all requirements set by regulators.”
- In addition to investigating BNB, the SEC is also investigating the exchange for potential insider trading and whether the company’s United States affiliate (Binance.US) is independent of the global trading platform.
- In addition, the US Securities Watchdog is investigating market makers reportedly linked to Binance CEO Changpeng “CZ” Zhao.
- The latest development comes shortly after a Reuters investigation reported that the exchange giant acted as a channel to launder at least $2.35 billion worth of illicit money.
- Binance has come under regulatory scrutiny from other US regulators such as the Commodity Futures Trading Commission (CFTC) and the Internal Revenue Service (IRS).
- Meanwhile, if the SEC views BNB as a security token, the company could face a fate similar to that of Ripple. In a subsequent court battle with the regulator, it was alleged that Ripple made a $1.3 billion unregistered security offering.
- Later, CZ published a company statement on the matter, seeking to refute the money-laundering allegations through an elaborate email exchange with Reuters.
It’s 50+ pages of email records between our cybersecurity team (ex-law enforcement background) and journalists cherry-picking, misleading and time-wasting.
If you have time to waste, check out the details and the truth for yourself. https://t.co/Y8bAvS5edk
— CZ Binance (@cz_binance) 6 June 2022
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