Breaking: U.S. SEC Initiates Investigation Into the 2017-Sale of Binance’s BNB Crypto

The world’s fifth-largest cryptocurrency BNB Coin has now come under the scrutiny of the U.S. Securities and Exchange Commission (SEC). After five long years, the securities regulator has launched an investigation on whether Binance violated the securities laws with its 2017 BNB token sale.

This is the second major cryptocurrency after the XRP that has come under the SEC scanner. This could be a concerning development for Binance which is already facing major regulatory hurdles across the globe and in the U.S. The U.S. SEC has been keen to bring enforcement actions over some popular ICOs for raising funds. In a statement to Bloomberg, Binance said:

“It would not be appropriate for us to comment on our ongoing conversations with regulators, which include education, assistance, and voluntary responses to information requests.”

The crypto exchange further added that it will continue to engage with authorities and “we will continue to meet all requirements set by regulators”. The BNB cryptocurrency is currently trading 7% down at a price of $285 and a market cap of $46.7 billion.

Binance In Troubled Waters?

Cryptocurrency exchange Binance has been facing some regulatory issues in the U.S. Apart from the SEC, the world’s largest crypto exchange faces investigations from the Commodity Futures Trading Commission (CFTC), the Internal Revenue Services (IRS), and the Justice Department.

A recent report suggests that Binance had allegedly aided a $2.35 billion money-laundering scheme. On the recent SEC investigation, sources also said that it may not lead to the securities regulator suing the company. However, it means that it could see the fate of Ripple and years of court trials before coming to a conclusion. One of the sources also added:

Beyond BNB, the SEC is also probing possible trading abuses by Binance insiders and whether Binance.US, an American affiliate formed in 2019, is appropriately hived off from its global counterpart.

One of the sources also said that the SEC is looking at market-making companies tied to Binance CEO Changpeng Zhao. The SEC looks interested into Zhao’s ownership stakes of market makers on Binance U.S.

The post Breaking: U.S. SEC Initiates Investigation Into the 2017-Sale of Binance’s BNB Crypto appeared first on CoinGape.

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