SEC is Investigating Binance for Its Token BNB

Although the pre-sale took place in 2017, the SEC is investigating whether Binance committed any kind of violation of securities laws by trading the BNB token through an ICO. This puts BNB in a situation like the one Ripple (XRP) is currently experiencing.

A report recently published by the Bloomberg News Agency suggesting that the Securities and Exchange Commission (SEC) is conducting an ongoing investigation against Binance, precisely to determine if it violated securities laws after the sale of its token, Binance Coin (BNB), five years ago.

According to Bloomberg, the information in question was provided by sources with knowledge of the case, which indicate that the SEC would be investigating the origins of Binance and the launch of the BNB token, for which they would be examining whether its pre-sale corresponded with the sale of a security that had to have been duly registered with the regulatory agency.

The DOJ, IRS and CFTC also opened investigations last year into the company for several possible criminal violations, including insider trading and market manipulation.

The Binance team claimed that at the moment they cannot provide comments on the ongoing conversations with regulators but announced that it is in constant contact with the authorities and that it will comply with the rulings indicated by the regulatory authorities.

For its part, the SEC team refrained from commenting on the matter.