SEC Investigating Binance's U.S. Arm
According to a Tuesday report published by the Wall Street Journal, the U.S. Securities and Exchange Commission has launched a probe into Binance.US, the US-based arm of the cryptocurrency giant.
Merit Peak Ltd and Sigma Chain AG, the two trading companies linked to Binance CEO Changpeng Zhao, are at the center of the investigation, with the securities watchdog working to determine how exactly they are related to the subsidiary.
As of late 2021, Zhao was at the helm of both of the companies. Trading platforms are required by law to disclose the names of affiliated market makers since they could likely get an unfair advantage over other traders by being able to execute their trades in a more efficient manner.
Binance.US, which was launched in September 2019, was also subpoenaed by the SEC in 2020.
Rival Coinbase, which went public last April, denied having any affiliated market makers in a statement to the Wall Street Journal.
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