US Securities and Exchange Commission advances investigation against Binance for pre-sale of the BNB token, reveals Bloomberg – DiarioBitcoin

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US Securities and Exchange Commission advances investigation against Binance for pre-sale of the BNB token, reveals Bloomberg - DiarioBitcoin By Angel Di Matteo @shadowargel

Although the presale took place in 2017, the SEQ I would be investigating if Binance incurred some type of violation of securities laws for trading the token BNB through a ICO. This would put the exchange in a situation similar to the one it is currently experiencing. Ripple.


  • SEQ investigate to Binance for pre-sale of the token BNB.
  • the token BNB was marketed in 2017 through a ICO.
  • The SEQ fight in court against Rippl for similar reasons.
  • The ISR and the CFTC They also investigate Binance In U.S.A.

A report recently published by the news agency Bloomberg suggests that the US Securities and Exchange Commission (SEC) has an ongoing investigation against Binance, precisely to determine if it violated securities laws after the sale of its token BinanceCoin (BNB) Five years ago.

SEQ conducts investigation against Binance

In accordance with Bloomberg, The information in question was provided by sources with knowledge of the case, which indicate that the SEQ would be researching the origins of Binance and token launch bnb, so they would be examining whether the pre-sale of the same corresponded to the sale of a security that had to have been duly registered with the regulatory agency.

According to the report, this would be a new incursion by the SEQ against companies within the crypto space that were financed through pre-sale campaigns for new cryptocurrencies. Let us bear in mind that the regulator is currently holding a dispute in court with the company that develops solutions blockchain, ripple, which he sued for the alleged sale of securities in 2013 when they were trading the token XRP.

According to the founding document (White Paper) of Binance introduced in 2017, the pre-sale of the token BNB contemplated the marketing of at least 100 million units through a campaign ICO, which was carried out through multiple platforms around the world. Those who acquired the digital currency at that stage could access it at a low cost compared to when it was officially launched on the market, and the company clarified that 85% of said funds raised would be used to support the operations and international deployment of the service. .

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Apparently, in addition to the above, at the SEQ He is concerned about the fact that US residents participated in these pre-sale campaigns, which would indicate that there was no type of restriction or control over who could acquire said tokens, this in accordance with what was indicated by the securities laws in force at that time. He also points out that Binance offered to pay its employees and service providers with the token bnb, which would have other types of implications for said digital asset.

Case similar to Rippl?

Although the sources clarify that a compliance investigation by the SEQ does not necessarily lead to a lawsuit by the regulator, for many the measure is somewhat similar to the actions and complaints filed by the regulator against Ripple.

Currently the CEO of Ripple, Brad Garlinghouse, and other members of his team appear in court in a dispute against the SEQ which still seems far from over. However, the trial has taken certain turns and everything seems to tilt the balance in favor of the solution developer company blockchain, which holds that the token XRP it is not a security and that by marketing it they did not violate any law currently in force.

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As detailed by the team Bloomberg, the investigation may be considering other important aspects. It details that it is also under consideration if Binance.US actually works as a separate entity from Binance, as well as other possible allegations of the use of privileged information to carry out investment activities that derived very lucrative results for certain people.

Let us bear in mind that Binance Currently it does not have a physical headquarters in any country, although that has not been an impediment for it to opt for and access the respective licenses to offer its services in a large number of legislations. It should also be considered that this has not been an inconvenience for the exchange to continue carrying out its expansion process, which has further consolidated its position at regional levels.

Investigation is ongoing

Faced with this report, the team of Binance He alleged that at the moment they cannot provide comments on the ongoing conversations with regulators, but he announced that he is in constant contact with the authorities and that he will comply with the rulings indicated by the regulatory authorities.

For its part, the team SEQ He refrained from commenting on the matter.

Currently the Internal Revenue Service (IRS) and the Commodity Futures Trading Commission (CFTC) also carry out investigations against Binance, this under the premise that the exchange allowed US residents to trade cryptocurrencies through its platform.

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Recommended reading

Font: Bloomberg, TheBlogCrypto

Angel Di Matteo version / DailyBitcoin

Picture of Unsplash, edited with Canva

WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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