Binance is under investigation by the U.S. Securities and SEC due to BNB token & ICO Holdings broke securities rules.

Cryptocurrency exchange giant Binance is reportedly under investigation by the U.S Securities and Exchange Commission (SEC) which is probing the sale of the crypto company's native coin BNB.

Binance is under investigation by the U.S. Securities and SEC due to BNB token & ICO Holdings broke securities rules.

The US watchdog is looking into Binance's ICO back in 2017 to check if the exchange's BNB token was sold as an unregistered security. 

The SEC investigation into the BNB token is "likely months away form any conclusion" the Commission is yet to release an official statement Binance person's said; 

“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. We will continue to meet all requirements set by regulators”.

The SEC is also investigating the exchange for possible insider trading and also checking if the company's United States affiliate is independent of the global trading platform. 

Also, the US securities watchdog is reportedly scrutinizing market makers connected to Binance CEO Changpeng "CZ" Zhao.

Binance has come under regulatory scrutiny from other American regulators like the Commodity Futures Trading Commission and the Internal Revenue Services.

The Company could face the same fate as Ripple if the SEC sees BNB as a security token. The latter is in a court battle with the regulator after it alleged that Ripple conducted a $1.3 billion unregistered security offering. 

CZ shares a company's statement on the matter, trying to debunk the money laundering allegations through a detailed email exchange with Reuters.

Read: Over $200 Million Liquidated as Bitcoin Gets Rejected at $32K