According to the Wall Street Journal, the US Securities and Exchange Commission has initiated an investigation into Binance’s relationship with two trading firms linked to founder Changpeng Zhao. The Securities and Exchange Commission (SEC) is investigating whether Binance’s US arm properly discloses its affiliations to two trading businesses — Sigma Chain AG and Merit Peak Ltd. — that act as market makers on Binance US.
According to the WSJ, Zhao controlled the two companies as of late last year, citing former Binance executives. Binance is currently grappling with regulatory issues in a number of countries, despite the fact that it does not have a real worldwide headquarters.
The SEC’s inquiry into Binance is the latest in a series of high-profile investigations into the crypto business, including a US$100 million settlement with crypto interest provider BlockFi.
It’s a wrap for this story.