The US Securities and Exchange Commission (SEC) launched an investigation into the Binance token sale in 2017. The regulator will assess whether this was an unregistered offering of securities.
Such an offer must be registered with the regulator, and if the Binance ICO is indeed recognized as an unregistered sale of securities, then the exchange faces massive fines. At the moment, BNB has been transferred to its own blockchain and has become the fifth largest cryptocurrency in the world by capitalization.
Bloomberg journalists requested comments from Binance representatives, however, the exchange said that it would be “inappropriate” to comment on ongoing negotiations with regulatory authorities. At the same time, Binance continues to work “closely” with the authorities and comply with all requirements set by the regulators.
Recall that Binance attracted investors and traders to buy BNB with reduced commissions, in case the commissions were paid with these tokens. There are still a few months left before the final decision of the SEC in this case. It is possible that the sale of BNB will be recognized as quite legitimate.
Earlier, the Reuters news agency stated that between 2017 and 2021, North Korean hackers laundered more than $2.35 billion through the Binance exchange.
Source: Bits
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