Crypto markets took a nosedive the past few months, with many coins experiencing major losses. One coin in particular; Binance, a mid-table tokenized on the blockchain– suffered another hit when U.S-based securities regulators, the Securities and Exchange Commission or SEC, dive into an investigation surrounding said tokens.
The U.S Securities and Exchange Commission is investigating whether Binance breached securities laws when it conducted an initial coin offering or ICO for its blockchain-based token in 2017, according to Bloomberg News.
The potential fine for Binance if they are found to have conducted an unregistered security offering in 2017 could be huge, just like Ripple Labs. The company is currently going through a lawsuit with the SEC over their sale of XRP tokens which was made back at Christmas time in 2020.
The fight against the SEC is heating up as Ripple Labs goes to court for an unregistered security offering worth $1.3 billion.
Despite the situation, it was reported that an SEC investigation into Bitcoin BNB is “likely months away from any conclusion.” The commission has yet to release a statement on their findings.
“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,” said a Binance spokesperson. “We will continue to meet all requirements set by regulators.”
The SEC is investigating Binance for possible insider trading. They are also looking into the exchange’s relationship with its U.S. affiliate, as well as market makers who might be connected to CEO Changpeng Zhao or CZ.
Reuters shared a report from an investigative news organization revealing that Binance was used as an outlet for laundered funds worth over $2.35 billion dollars.
The giants of the exchange industry came under scrutiny from other American realtors, including those at The Commodity Futures Trading Commission (CFTC) and Internal Revenue Service (IRS).
BNB is currently the fifth-largest cryptocurrency. As of this writing, its price is $291.36.