Binance coin, BNB under investigation in U.S, slumps in crypto market

Binance coin, BNB slumps amid United States investigation into the cryptocurrency’s initial coin offering in 2017, increasing the number of government probes that the world’s largest exchange is facing.

The crypto asset is a product of Binance, founded by Changpeng Zhao.

The U.S. Securities and Exchange Commission (SEC) is probing if the BNB coin was unregistered security before it listed for public offering.

Following the report, Binance coin depreciated by 1.10% in the last 24 hours, to trade at $295.88, maintaining its position as the fifth most valuable cryptocurrency.

“it would not be appropriate for us to comment on our ongoing conversations with regulators, which include education, assistance, and voluntary responses to information requests.” Binance was quoted by Bloomberg on Monday.

Binance further stated that, “we will continue to meet all requirements set by regulators.” However, this is not the only case involving the firm in U.S, as Zhao’s company also faces probe from the Department of Justice (DoJ).

The Internal Revenue Service, and the Commodity Futures Trading Commission (CFTC) are also looking into the activities of the cryptocurrency exchange, which Zhao split into two; Binance U.S, solely for citizens of United States and residents in the country, while Binance.com services the rest of the world.

U.S government is investigating Binance U.S, to ensure that the crypto exchange is a standalone from Binance.com, as required.

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