The US Securities and Exchange Commission (SEC) is investigating the connection of the US division of the Binance cryptocurrency exchange with two trading firms Sigma Chain AG and Merit Peak.
According to The Wall Street Journal, the SEC has asked Binance for information about these companies. According to some documents, these firms are associated with the CEO of the exchange, Changpeng Zhao. Companies act as market makers and are constantly buying and selling cryptocurrency on Binance.US, which usually reduces market volatility.
SEC representatives want to find out if these companies have any preferences when working with the Binance.US platform – perhaps the orders of these companies have an increased priority for execution. The regulator also wants to determine whether the site has notified its customers about cooperation with Sigma Chain AG and Merit Peak – according to the law, exchanges must report related market makers.
Earlier, SEC Chairman Gary Gensler said that the Commission is ready for “tough measures” to protect investors.
Source: Bits
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