Binance’s BNB, the fifth largest cryptocurrency, has been investigated by the US Securities and Exchange Commission (SEC).
BNB, the native token on Binance, fell a whopping 11% after news broke about the probe. The token is trading at an average price of $279.6 at press time.
Other exchange-linked tokens, including Kucoin’s KCS and FTX, fell more than 5% each.
BNB down 22% in the last 30 days
According to reports, the SEC is investigating whether Binance Holdings Ltd.’s Initial Coin Offering (ICO) has violated the commission’s securities rules. The ICO under scrutiny was launched in 2017 by the largest crypto exchange.
The agency assesses the private affairs of the people during the launch of the company and those involved with the BNB token. The officials are investigating whether the BNB’s offer amounted to the sale of a security that should have been registered with the committee. The SEC’s investigation has created more problems for the largest crypto platform as it is already plagued by many other legal and controversial issues.
Meanwhile, the BNB token has recorded a steady decline of nearly 22% over the past 30 days amid a broader crypto market downturn. Its total market cap has shrunk to $45.6 billion. The circulating supply stands at 162.2 million.
In addition, a Reuters report Monday also accused the company of facilitating more than $2.5 billion in illegal transactions over the span of a few years. Binance denied the allegations.
SEC opens investigation into multiple ICOs
Binance has chosen not to comment on the ongoing discussions with the committee. It added that it is working according to the authorities and will continue to comply with all the demands made by them. Recently, the regulatory body has opened many investigations into the offering, issuing virtual tokens to raise funds.
According to the report, the crypto exchange has laid out its plans for the launch of BNB in the white paper. The document stated that the circulation of the BNB would be limited to 200 million. While half of the tokens are sold by ICO on multiple platforms worldwide. It added that Binance’s founding team would reserve another 80 million tokens. This list included the CZ, CEO of Binance.
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