Binance coin, BNB under investigation in U.S, slumps in crypto market

Binance coin, BNB slumps amid United States investigation into the cryptocurrency’s initial coin offering in 2017, increasing the number of government probes that the world’s largest exchange is facing.

The crypto asset is a product of Binance, founded by Changpeng Zhao.

The U.S. Securities and Exchange Commission (SEC) is probing if the BNB coin was unregistered security before it listed for public offering.

Following the report, Binance coin depreciated by 1.10% in the last 24 hours, to trade at $295.88, maintaining its position as the fifth most valuable cryptocurrency.

“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.” Binance was quoted by Bloomberg on Monday.

Read also: Binance, other Nigerian crypto exchanges to pay N30.5m for SEC operational licence

Binance further stated that, “we will continue to meet all requirements set by regulators.” However, this is not the only case involving the firm in U.S, as Zhao’s company also faces probe from the Department of Justice (DoJ).

The Internal Revenue Service, and the Commodity Futures Trading Commission (CFTC) are also looking into the activities of the cryptocurrency exchange, which Zhao split into two; Binance U.S, solely for citizens of United States and residents in the country, while Binance.com services the rest of the world.

U.S government is investigating Binance U.S, to ensure that the crypto exchange is a standalone from Binance.com, as required.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now