The SEC reportedly launched an investigation against Binance to find out if its BNB token was an unregistered security during its initial coin offering in 2017. Bloomberg. BNB coins are mainly used to pay transaction fees on Binance, currently the world’s largest crypto exchange. The company also faces another, separate SEC – launched in February – into alleged links between its founder and two trading companies. The DOJ, the IRS, and the CFTC too The company was investigated over the past year for a range of potential criminal violations, including insider trading and market manipulation.
“As the industry has grown rapidly, we have worked very diligently to educate and assist law enforcement and regulators in the United States and internationally while also complying with new guidelines. We will continue to comply with all regulatory requirements,” a Binance spokesperson wrote in an email to Engadget in response to a request for comment. Engadget has also reached out to the SEC for comment and will update it when we receive feedback.
The SEC has expanded its in recent years of ICOs for not registering with the agency before the IPO. The agency’s specific investigation into Binance also aims to find out whether Binance.US – an affiliated exchange launched in the US in 2019 after the latter – is actually a separate entity from China-based Binance.
Binance has reportedly processed at least $2.35 billion in illegal transactions related to drugs, hacks, and fraudulent activities, according to a Reuters detection today. The story details a number of high-profile Binance hacks, including a by the North Korean hacker group Lazarus. Binance in a responded to the Reuters History, wrote that she was “full of untruths” and made her email exchanges public with the news outlet. In exchange, Reuters Reporters asked Binance to confirm several details from their reporting, including whether the company had taken steps to curb further illegal activity. Based on the released emails, Binance appears to have declined to put the requested details on file with Reuters.
“We are sorry that Binance declined our interview request. As we have explained, we cannot commit to providing a full background briefing as it would not be ethical for us to withhold important information from an article,” he wrote Reuters Reporter Angus Berwick in an email to Binance spokesman Patrick Hillmann.
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