Reports claim the probe is looking at the relationship between the exchange and trading firms The US arm of crypto exchange Binance is under investig
Reports claim the probe is looking at the relationship between the exchange and trading firms
The US arm of crypto exchange Binance is under investigation from the US Securities and Exchange Commission (SEC), according to reports.
The SEC is looking into the relationship between Binance CEO Changpeng Zhao and trading firms Sigma Chain AG and Merit Peak, the Cointelegraph reported, citing an article from the Wall Street Journal.
The federal regulator reportedly requested information from the crypto exchange on the two companies and is investigating how it may have disclosed its potential links to the market makers to users, the reports claimed.
The trading firms act as market makers, buying and selling crypto on Binance.US, which helps to reduce volatility.
Cointelegraph said the SEC bought 97 enforcement actions against crypto firms between 2013 and 2021, including Poloniex and Blockchain Credit Partners and dished out US$2.35bn in penalties.
Binance was reportedly under investigation last May by the Department of Justice and the Internal Revenue Service, according Cointelegraph, with Binance users allegedly using crypto for illicit transactions.
A report from March last year also suggested the Commodity Futures Trading Commission was investigating the activity of Binance users, with Zhao denying allegations at the time.
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