SEC is investigating Binance regarding its BNB token

The SEC is launching a new investigation into Binance to find out if its BNB token was a security during its 2017 ICO.

The SEC launched an investigation into Binance to determine if its BNB token was a security during its initial coin offering (ICO) in 2017. BNB coins are primarily used to pay fees on Binance, the largest crypto exchange on the planet, right now. The company is also facing another SEC investigation, launched in February, into possible links between its founder and the two trading companies. The Justice Department, the IRS and the CFTC also launched investigations last year for several possible offenses, including insider trading and market manipulation.

SEC launches new investigation into Binance

A Binance spokesperson insisted on reiterating that the company “continues to comply with all requirements set by regulators.” In recent years, the Securities and Exchange Commission has stepped up its enforcement of ICOs that were not announced to the agency before they went public. This investigation also looks into whether Binance.US, a subsidiary launched in the US in 2019 after the latter was banned, is a real separate entity from Binance based in China.

To find out if his BNB token was a security during his ICO in 2017

According to a recently released Reuters investigation, Binance allegedly processed at least $2.35 billion worth of illegal transactions, drugs, hacks, and other fraudulent activities. The article also looks at some of the Binance hacks, specifically from the Lazarus group in North Korea. In a blog post, the exchange responded that the article in question was “full of lies,” but when Reuters asked Binance if the platform had indeed taken steps to counter future illegal activity, the exchange remained silent. “We regret that Binance denied our interview request,” Angus Berwick of Reuters wrote.