SEC Started Investigating Binance Over the BNB Sale

by in Cryptocurrency News

Binance SEC Investigation

The Securities and Exchange Commission of the US is investigating Binance in connection with the sale of the platform's BNB coin in 2017, when the company raised $15M. The agency is to find out whether Binance broke securities laws by selling the coins at the time of the launch.

Related: Binance Will Stop Operations in Ontario, Canada

According to a report by Bloomberg, people familiar with the matter said that the SEC reviews origins of the company and BNB. It is examining whether the ICO should’ve been registered with the agency.

Binance didn't comment on the news. In a statement, the company mentioned it wouldn't be proper to comment on discussion in progress with regulators. The company added that it works with authorities and will keep meeting all of their requirements, and provide necessary information voluntarily.

Binance operates the largest crypto exchange on the globe. Its native coin BNB is the 5th largest crypto with a market cap of over $46 bln. Previously, in December 2020, the SEC sued Ripple and its two executives over the sale of the XRP token. Hearings continue.