- A recent Bloomberg report reported that the US Securities and Exchange Commission has launched an investigation into Binance Coin (BNB).
The fifth largest cryptocurrency Binance Coin (BNB)is under investigation by the US Securities and Exchange Commission (SEC). BNB, the native token of popular crypto exchange Binance, fell by as much as 11 percent after the news of the investigation. The token is trading at an average price of $282.17 at the time of writing, down 9 percent.
Following this development Kucoin‘of KCSi and FTX‘of FTT TokenAll other exchange-linked tokens, including .
BNB has dropped 22 percent in the last 30 days
According to reports, the SEC placed the platform under scrutiny to investigate whether the commission violated securities rules in the issuance of Binance Holdings Ltd. The ICO under review was launched in 2017 by the largest crypto exchange.
Regulator, BNB tokenIt examines the people involved in the company and their special relationships during the company’s launch. Authorities are investigating whether the issuance of BNB constitutes a sale of a security that should be recorded in commission. The SEC’s investigation makes things a little more difficult for the largest cryptocurrency platform, which is already dealing with a host of legal and political challenges.
Aside from all this legal process, the BNB token has fallen by over 22 percent in the last 30 days, impacted by a wide-ranging decline in the crypto market. The circulating supply of the altcoin, whose total market value has decreased to 45.6 billion dollars, is at the level of 162.2 million.
In addition, a Reuters report published on Monday accused the company of providing over $2.5 billion in illegal transactions over several years, while Binance denied the allegations.
SEC launches investigation for multiple ICOs
Binance has chosen not to comment on the ongoing discussions with the commission. Stating that they are operating according to the rules of the authorities, the exchange added that it will continue to meet all the requirements set by them. Recently, the Regulator has launched a series of investigations into issuances involving the issuance of virtual tokens to raise funds.
According to the report, the investigation has not yet reached a conclusion. The regulator may not initiate legal action against the exchange.
Having experienced tremendous growth in 2021, BNB remains the fifth largest cryptocurrency by market cap. The cryptocurrency, which fell under the influence of the news, is trading with a decrease of about 60 percent from its all-time high reached last year.
The SEC sued Ripple in December 2020 for alleged illegal sales of XRP. The outcome of the risky and dire litigation is expected to have far-reaching consequences for the entire industry.
As reported by KoinFinans, the regulator started investigating DeFi king Uniswap in September.