The SEC Targeted Binance’s BNB ICO For Possible Violations

The SEC targeted Binance’s BNB ICO for possible violations from five years ago in the launch of the Binance Coin so let’s have a look at our latest Binance news.

The initial coin offering which served as the cornerstone of the launch of the binance crypto exchange in 2017 is getting a new look from federal regulations. According to sources, the reports Tom Schoenberg and colleagues, the SEC is revisiting the origins of the exchange’s Binance Coin for possible violations of securities regulations after its launch in 2017 as the exchange became the biggest crypto exchange on the market by trading volume.

The news of the federal regulatory probe came after a Reuters report which released the results of an unrelated investigation where the news service claims with at least $2.35 billion in illicit funds were laundered via Binance between 2017 and 2021 so it is unclear what prompted the latest look back by the SEC and BNB is now the fifth biggest crypto and logged a total marekt cap of $48 billion with a 24-hour trading volume of $1.4 billion. At the heart of the case is the SEC regulatory authority over the investment contracts and whether the digital currencies that qualify as such especially if they are sold to investors as a way to fund the company with the promise of profiting from the company’s efforts.

BNB was created in 2017 as the ERC-20 token on the Ethereum blockchain before shifting to a separate Binance Chain and the initial coin offering of 100 million tokens at 15 cents per token raised $15 million with the native currency on the binance exchange BNB can be traded directly and used to make purchases and payments with a payment of a discounted rate on the Binance fees. The SEC targeted Binance’s BNB ICO for possible violations and Bloomberg asserted that Binance faces investigations in Washington which in turn are part of dozens of enforcement actions over ICOs.

In a statement to the financial news outlet, Binance said:

“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. We will continue to meet all requirements set by regulators.”

The regulators could also be looking at the Binance US as an affiliate company founded in 2019 and whether it is separated from the global parent. Bloomberg quoted the company officials saying that binance US is a separate trading platform whcih services US users by offering products and services which are compliant with US federal and state regulations as well as a separate statement from Binance US affirming the commitment to complaince. Binance was hit with $5 million class-action lawsuits where users claimed the exchange sold 79 different assets which should have been handled as licensed securities.