December 8, 2023

US Securities and Exchange Commission Investigates Binance.US

The US Securities and Exchange Commission (SEC) has launched an investigation into the American divisionthe largest cryptocurrency exchange Binance. According to the Wall Street Journal, the regulator was interested in firms associated with the CEO of the trading floor, Changpeng Zhao.

According to material published yesterday, the SECstudies the relationship between Binance.US and Sigma Chain AG and Merit Peak. The regulator has requested information from the crypto exchange about these two companies and is investigating how they could affect the activities of Binance.US.

The news outlet reported that the documents for 2019year, as well as former Binance executives link Zhao to both firms. Sigma Chain AG and Merit Peak, acting as market makers, buy and sell cryptocurrency on Binance.US continuously, such actions usually reduce price volatility.

The fact that the SEC is investigating, even if it is confirmed, does not mean that any decision will be made that affects the activities of Binance. But the regulator is usually just not interested in anyone.

In May 2021, Binance caught the eyeThe Department of Justice and the Internal Revenue Service (IRS) - at least this is what Bloomberg tried to convince its readers. It was reported that Binance is being checked for anti-money laundering and tax violations. In March 2021, there were rumors that the Commodity Futures Trading Commission (CFTC) was also investigating a major cryptocurrency exchange, suspecting it of allowing US residents to trade cryptocurrency derivatives without a proper license.

Official representatives of Binance, to all accusations and attempts at investigations, state that the exchange never comments on its relationship with regulators and strives to work within the law.