SEC Launches Investigation on Binance Over Alleged Securities Laws Violation in 2017


Binance has come under regulatory scrutiny again, this time with the SEC. The United States Securities and Exchange Commission (SEC) recently launched an investigation on the behemoth cryptocurrency exchange to ascertain whether it violated securities laws with its BNB token initial coin offering (ICO) five years ago. The latest regulatory report was published by Bloomberg on Monday, citing several commentators familiar with the case.

The crypto exchange could be put under similar treatment as Ripple Labs, which has been battling the regulatory agency in court since December 2020, if the agency discovers that the BNB sale of 2017 was an unregistered security offering. The SEC sued Ripple and some of its executives for allegedly organizing an illegal sale of XRP tokens.

However, a source familiar with the matter told Bloomberg that an SEC enforcement probe into BNB could take months to reach any conclusion.

Commenting on the development, Binance explained to news outlets that “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.” Regardless, the company asserted that it will “continue to meet all requirements set by regulators.”

Binance Faces Multiple Investigations in the US

Due to previous legal run-ins with US authorities, the behemoth exchange operates as in the North American nation. The giant trading platform asserted that and “are separate entities.”

Meanwhile, recently issued a statement noting that it remained “committed to upholding the highest standards of compliance.”

The Bloomberg publication also detailed that the crypto exchange was facing several investigations in Washington. The SEC is running investigations on possible trading abuses by Binance insiders and also probing market-making firms linked to Binance CEO Changpeng Zhao (CZ).

BNB suffered a sharp 11% decline on Monday following the announcement of the investigation. At press time, the fifth-largest cryptocurrency trades at $288.


You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.