SEC Investigates Binance.US Over Trading Affiliations
The U.S. Securities and Exchange Commission (SEC) has opened an investigation into crypto exchange Binance’s US-based entity regarding trading firms connected to Binance Chief Executive Changpeng Zhao.
According to a Wall Street Journal report, the SEC is probing into the relationship between Binance.US and trading firms Sigma Chain AG and Merit Peak. The financial regulator has reportedly requested information from the U.S. crypto exchange on the two companies and is looking into how it may have disclosed its potential links to the market makers to users.
SEC has requested corporate documents from 2019 as well as former Binance executives connect Zhao to both trading firms, according to the report. Both market makers, Sigma Chain AG and Merit Peak, buy and sell crypto on Binance.US continuously, which usually reduces price volatility.
It is still unclear if the SEC will proceed with any enforcement action even if it confirmed an investigation was underway.
