Cody McGrath 
A report gathers that SEC is investigating Binance Coin over some money laundering issues and businesses related to Binance CEO Changpeng Zhao.
Binance Coin (BNB), the world’s fifth-largest cryptocurrency is now being investigated by the Securities and Exchange Commission (SEC) in the United States. After a five-year wait, the Securities and Exchange Commission has launched an investigation into whether Binance violated securities laws with its 2017 BNB token sale.
After Ripple (XRP), this is the second major cryptocurrency to be scrutinized by the SEC. This could be a worrying development for Binance, which is already facing major regulatory challenges around the world, including in the United States. The SEC in the United States has been eager to bring enforcement actions against some popular ICOs for raising funds. Binance said in a statement to Bloomberg:
“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.”
The cryptocurrency exchange went on to say that it will continue to work with authorities and that “we will continue to meet all requirements set by regulators.” The BNB cryptocurrency is currently trading 7% lower at $285 with a market cap of $46.7 billion.
Binance, a cryptocurrency exchange, has been dealing with regulatory issues in the United States. Aside from the SEC, the Commodity Futures Trading Commission (CFTC), the Internal Revenue Service (IRS), and the Justice Department are all looking into the world’s largest cryptocurrency exchange.
According to a recent report, the crypto exchange allegedly assisted a $2.35 billion money-laundering scheme. According to sources, the recent SEC investigation may not result in the securities regulator suing the company. However, it could take years of court trials and the fate of Ripple before reaching a decision. One of the sources also mentioned:
“Beyond BNB, the SEC is also probing possible trading abuses by Binance insiders and whether Binance.US, an American affiliate formed in 2019, is appropriately hived off from its global counterpart.”
According to one of the sources, the SEC is also looking into market-making firms associated with its CEO Changpeng Zhao. The SEC is investigating Zhao’s ownership stakes in Binance U.S. market makers.