The U.S. Securities and Exchange Commission (SEC) is investigating whether leading cryptocurrency exchange Binance broke securities rules by selling its BNB token during its initial coin offering (ICO) five years ago.
Investigators are examining whether the 2017 initial coin offering was a sale of a security that should have been registered with the SEC. The SEC has over the last few years investigated numerous ICOs.
In a statement, Binance said it would “not be appropriate for us to comment on our ongoing conversations with regulators,” adding these include “education, assistance, and voluntary responses to information requests.” The company added that it works with authorities and will keep on meeting “all requirements set by regulators.”
Beyond BNB, the regulator is also reportedly looking for possible trading abuses by Binance insiders and whether Binance.US, the company’s American affiliate formed in 2019, is appropriately separated from the exchange’s global counterpart.