Binance crypto exchange accused of breaking the law in America

The U.S. Securities and Exchange Commission (SEC) is investigating whether Binance Holdings violated securities rules when it launched its BNB token in an initial coin offering (ICO) five years ago, Bloomberg reported on June 6.

Binance is the world’s largest crypto exchange, and BNB is the fifth largest cryptocurrency in the world.

The BNB ICO took place in July 2017 on several platforms, at the height of the so-called ICO boom. According to Bloomberg, citing unnamed people familiar with the matter, at least one US resident has come forward to say that he participated in the ICO, which could be a crucial fact for the SEC’s case if the agency decides to take the matter to court.

At the same time, the case can be closed without submitting documents to the court. According to the source, the investigation of Binance will be completed in a few months at the earliest.

A Binance spokesperson said: «We do not comment on ongoing negotiations with regulators, which include, among other things, education, assistance, and voluntary responses to information requests. We are cooperating with the authorities and will continue to comply with all requirements imposed by the regulators.»

The BNB token reacted to the news by falling by 8.2%. It is worth noting that the last day was not the best for the No. 1 crypto exchange — yesterday, Reuters accused Binance of laundering more than $ 2 billion between 2017 and 2021.