Bloomberg published a report indicating that Binance BNB faces an investigation by the US Securities and Exchange Commission (SEC) for possible violations of the Securities Exchange Act with the illegal sale of Binance coin in 2017.
Binance sold its cryptocurrency BNB in ​​2017, which is now an important part of the Binance ecosystem.

Binance offered 100 million BNB for sale, half of the total offer, in an initial coin sale (ICO).

The BNB ICO white paper stated that 85 percent of the funds raised will be used to build a global trading platform called Binance, and the funds raised will be used for marketing.

The founding team of Binance, including CEO Changpeng Zhao, held 80 million BNB tokens.

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BNB has risen in value over the years.

The US stock exchange regulator is primarily investigating whether BNB cryptocurrency can be classified as a security, and whether Binance has broken laws by selling unregistered securities.

Neither the SEC nor Binance confirmed the investigation reports.

In a press release, a Binance spokesperson said:

As the industry is rapidly evolving, we work hard to educate and assist law enforcement and regulators in the United States and internationally, while also adhering to new guidelines.

We will continue to meet all requirements set by the regulators.

For your information, a regulatory investigation does not guarantee an enforcement action or a lawsuit against Binance.

Several regulatory agencies closely follow Binance:

The potential investigation from the Securities and Exchange Commission (SEC) is not the first that Binance will face.

Binance is already facing investigations in the US by the Department of Justice, the Commodity Futures Trading Commission (CFTC) and the Internal Revenue Service.

In addition, the US stock exchange regulator is investigating the relations of its subsidiary in the United States of America.

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There are also some rumors of an investigation into the US company Binance about whether its employees were indulging in insider trading.

Meanwhile, the Securities and Exchange Commission (SEC) is already in a legal battle with Ripple for allegedly violating US securities laws by illegally selling XRP.

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