SEC launched an investigation into Binance.US’s ties to trading companies
The regulator is investigating the involvement of the platform’s CEO Changpeng Zhao in two market maker organizations
16.02.2022 - 13:45
280
1 min
0
What’s new? The US Securities and Exchange Commission (SEC) has launched an investigation into the activities of the US unit of the Binance cryptocurrency exchange. The Wall Street Journal news outlet reported that 2019 corporate documents, as well as former employees, link the platform’s CEO Changpeng Zhao to Sigma Chain AG and Merit Peak. Both organizations act as market makers and constantly buy and sell cryptocurrency on Binance.US, which reduces price volatility.
Information on the Wall Street Journal website
What does the Binance website say? The exchange’s website states that the companies associated with it can carry out operations on the trading platform, but the organizations’ name is not specified. According to an unnamed representative of Binance US, the exchange cannot disclose information about investors and corporate culture but can provide this data at the request of regulators.
What had happened before? In May 2021, Binance was under investigation by both the Department of Justice and the Internal Revenue Service in an attempt to stop the use of cryptocurrencies for illegal transactions by US residents. In this, Changpeng Zhao was denying any allegations of misconduct on the exchange.
Useful material?
Crypto regulations
The platform will launch after meeting the preconditions of the local exchange authority
Dec 9, 2024
Market
The $1,1 billion figure was reached after the bitcoin correction
Dec 6, 2024
Crypto regulations
By early January, all open positions and loans of local users will be closed and repaid automatically
Dec 5, 2024
Trends
According to the fund’s analysts, stablecoins with a peg to the US dollar will gain popularity as the main means of settlement
Dec 5, 2024
Market
The platform takes no fees and allows any user without programming knowledge to launch their own asset in a few clicks
Dec 4, 2024
Incidents
Alex Mashinsky faces up to 30 years in prison on two counts of fraud
Dec 4, 2024