Investigation Launched Against Binance Coin (BNB); Here's Why

According to Bloomberg, the US Securities and Exchange Commission has opened an investigation into crypto exchange Binance's native asset Binance Coin (BNB).

The Commission is investigating Binance Holdings Ltd., the report claims, for potentially breaking U.S. securities law.

Binance was launched in 2017, and in July that year, it deployed its native token via an Initial Coin Offering (ICO).

Binance Coin (BNB) was distributed amongst early backers and angel investors and the exchange’s core team.

The token was sold for 15 cents at its public sale, and it help Binance to raise around $15 million in funds. The money was used to improve the platform, growth, marketing, education, and more.

According to Bloomberg, the Commission is examining whether Binance should have registered BNB as a security and if the ICO represents the unlawful selling of an unregistered asset.

The token is currently of the most popular in the world and has been moving from the third to the fifth position in terms of market capitalization.

Currently, Binance Coin (BNB) trades at $295 and records a 2% and 4% loss in the last 24-hours and 7-days, respectively.

The token records over $48 billion in market cap, the number three token without counting stablecoins Tether (USDT) and USD Coin (USDC) and seems to be negatively reacting to the news.