BNB Binance, the fifth largest cryptocurrency is reported to have been investigated by the U.S. Securities and Exchange Commission (SEC). This indirectly pushed BNB to decline by 11% after news of the investigation spread.
The token initially traded at an average price of $ 279.6 when it was reported and is now down to $ 278. The fall of BNB also occurred on several well -known crypto exchanges such as KCS and FTX Kucoin, declining more than 5% each.
Based on the report, the SEC is investigating whether Binance Holdings Ltd.'s initial coin offering (ICO) offer. violating the commission’s securities rules. The ICO was launched by the largest crypto exchange, Binance in 2017.
The agency (SEC) is currently reviewing personal affairs during the launch of the firm and those involved in the BNB tokens. Officials are checking whether BNB’s offer has the same amount as the sale that should have been registered with the commission or not. The SEC investigation has added even more difficulty to the largest crypto platform as it is at the same time facing other legal and controversial issues.
Meanwhile, BNB tokens have registered a fall of almost 22% over the past 30 days, amid a wider downturn in the crypto market. Its total market capitalization has shrunk to $ 45.6 billion.
Not only that, Binance is also embroiled in allegations thrown by Reuters that it has allowed illegal transactions of over $ 2.5 billion. However, Binance denies the allegations.
Binance has so far not commented on the matter. In fact, they chose to abide by the commission's actions. Recently, the Regulatory body has opened several investigations into an offer involving the issuance of virtual tokens as a measure to raise funds.
Binance had previously set out its plan in a ‘whitepaper’ before the launch of BNB that BNB would be limited to 200 million. While half of the tokens are sold by ICOs on various platforms around the world. It added that Binance’s founding team includes CZ that Binance will own another 80 million tokens.
