The SEC is looking into Binance’s BNB token.

The SEC is looking into Binance’s BNB token. The SEC has initiated an inquiry into Binance to see if its BNB cryptocurrency was an unregistered securities during its 2017 initial coin offering. Binance’s BNB currencies are primarily used to pay transaction fees on the world’s largest cryptocurrency exchange. A separate SEC investigation into suspected relationships between the company’s founder and two trading businesses was begun in February. Last year, the Department of Justice, the Internal Revenue Service, and the Commodity Futures Trading Commission all started investigations into the corporation for a variety of alleged criminal infractions, including insider trading and market manipulation.

“As the sector has grown rapidly, we’ve been working hard to educate and help law enforcement and regulators in the United States and around the world, while also conforming to new restrictions.” In response to a request for comment, “We will continue to meet all standards set by regulators.”

The SEC has been cracking down on initial coin offerings (ICOs) for failing to register with the agency before going public in recent years. The inquiry into Binance is also looking into whether Binance.US, an affiliated exchange that debuted in the United States in 2019 after Binance was banned, is a different organization from the China-based Binance.

According to a Reuters investigation published today, Binance processed at least $2.35 billion in unlawful transactions related to drugs, hacks, and fraudulent conduct. A number of high-profile Binance hacks were mentioned in the piece, including a robbery by the North Korean hacking outfit Lazarus. Binance responded to the Reuters story in a blog post, calling it “rife with inaccuracies” and revealing its email exchange with the news agency. Reuters reporters asked Binance to corroborate a number of aspects from their investigation, including whether the business had taken any steps to prevent additional criminal activity, in the exchange. Binance appears to have declined to provide the necessary details with Reuters on the record, based on the leaked emails.

“We regret that Binance has denied our interview request. In an email to Binance spokesperson Patrick Hillmann, Reuters writer Angus Berwick wrote, “As we said previously, we cannot agree to keeping a whole briefing on background because it would not be ethical for us to withhold essential material from an article.”

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