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Binance US under probe for ties with trading affiliates: report


forkast.news 16 February 2022 04:53, UTC
Reading time: ~2 m

The U.S. securities watchdog has launched a probe into crypto exchange Binance’s relationship with two trading firms with ties to founder Changpeng Zhao, the Wall Street Journal reported.

Fast facts

  • The Securities and Exchange Commission (SEC) is examining whether Binance’s U.S. arm properly discloses to users its links to two trading firms — Sigma Chain AG and Merit Peak Ltd. — which serve as market makers that trade on Binance US.
  • The WSJ cited former Binance executives in reporting Zhao controlled the two entities as of late last year.
  • Binance is currently dealing with regulatory hurdles in numerous regions without operating from a physical global headquarters.
  • The SEC’s probe on Binance is the latest in its high profile investigations into the crypto industry, which includes crypto interest provider BlockFi’s US$100 million settlement.

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