Per a Bloomberg report, the U.S. Securities and Exchange Commission launched a probe against crypto exchange Binance’s native token Binance Coin (BNB). The Commission is investigating Binance Holdings Ltd., the report claims, for potentially breaking U.S. securities law.
Related Reading | Bitcoin Fees Indicator Shoots Late Bear Market Signal
Binance was launched in 2017, and in July that year, it deployed its native token via an Initial Coin Offering (ICO). Binance Coin (BNB) was distributed amongst early backers and angel investors and the exchange’s core team.
The token was sold for 15 cents at its public sale, and it help Binance to raise around $15 million in funds. The money was used to improve the platform, growth, marketing, education, and more.
Citing people familiar with the matter, Bloomberg claims the Commission is investigating if Binance should have registered BNB as a security and if the ICO constitutes the illegal sales of an unregistered security. The token is currently of the most popular in the world and has been moving from the third to the fifth position in terms of market capitalization.
At the time of writing, Binance Coin (BNB) trades at $295 and records a 2% and 4% loss in the last 24-hours and 7-days, respectively. The token records over $48 billion in market cap, the number three token without counting stablecoins Tether (USDT) and USD Coin (USDC) and seems to be negatively reacting to the news.
Additional information claims the Commission might also be proving Binance.US, Binance’s subsidiary, to determine if the company is separated from its parent company business. Binance is yet to issue an official statement related to the investigation.
The crypto exchange platforms seem to be facing a day of negative news. Earlier today, Bitcoinist reported on a Reuter investigation claiming that Binance has enabled as much as $2.3 billion in money laundering through its platform.
Binance deny these accusations and highlighted its role in assisting law enforcement agencies to prevent criminals from levering its platform for illegal activities.
The U.S. SEC has launched legal actions against crypto-based companies for allegedly selling unregistered securities. Most notoriously, the Commission is currently in a legal battle against payment company Ripple and two of its executives for this reason.
Related Reading | JP Morgan CEO Says More Pain Ahead For Bitcoin, Ethereum, Cardano Investors
The legal battle is yet far from over, but recent developments don’t seem to favor the regulator. In that sense, legal expert Collins Belton commented the following on the probe against Binance Coin (BNB):
It’s been 5 years and it’s mcap is higher than most US companies, why wait this long to take potential action if you’re concerned about potential harm? Letting things balloon only to prick it once massive seems like a recipe for inducing consumer harm rather than staving it off.
The BONK token giveaway by Solana's Saga mobile phone has astonishingly surpassed the phone's sale price, igniting a surge in demand and market valuation, showcasing the volatile crypto-technology synergy.
AlexThe Scroll Origins NFT, a soulbound token exclusive to users engaged in the Scroll mainnet, marks a shift towards personalized, identity-centric digital assets in the blockchain realm.
KikyoCoinbase's legal clash with the SEC underscores the complexity in cryptocurrency regulation's evolving landscape.
Hui XinAmidst conflicts, Mimic Shhans witnessed a decline, followed by the costly and decentralised deployment of MMSS, sparking questions about its growth in the competitive world of BRC-20 tokens.
Hui XinThe multifaceted ecosystem of MMSS unveils a decentralised community intertwining art, culture, and technology, poised for significant growth and cultural impact within the blockchain realm.
Hui XinPalau's ongoing CBDC pilot is a significant stride towards a digitally inclusive and efficient financial ecosystem. With the success of Phase 1 and the onset of Phase 2, Palau is trailblazing the use of blockchain in national currencies, potentially shaping the future of global digital finance.
AlexYield Guild Games collaborates with Ubisoft, enhancing altcoin value and market interest, though long-term prospects remain uncertain.
KikyoFTX's new bankruptcy plan proposes valuing digital assets at the bankruptcy date, potentially disadvantaging creditors.
AlexChainlink unlocks $162M in LINK tokens, diverging from usual market expectations by using them for network incentives and development.
KikyoChase's abrupt account freeze and termination leave a customer facing financial hardship after depositing a government refund check.
Alex