Regulators and media attacks on Binance

Binance coin (BNB), the original symbol of the largest crypto exchange on the market, Binancecontinues to post losses as attention from regulators and media again puts the stock market in the spotlight – and not in a positive way.

Source: AdobeStock / Diego

BNB is currently trading around $ 282.7, down 9.1% in the last 24 hours. The token has fallen 12.2% over the past week and nearly 60% from its record high of $ 686, which was recorded in May 2021, according to CoinGecko.

BNB price development over 7 days. Source: coingecko.com

The entire crypto market is in the red today, although BNB is one of the hardest hit among the 100 best cryptocurrencies measured by market value.

New articles claim that US regulators are investigating whether Binance broke the securities rules by selling digital tokens in an ICO (Initial Coin Offering) in 2017.

According to Bloomberg, citing people familiar with the matter US Securities and Exchange Commission (SEC) is investigating the origin of the BNB token, which is currently the fifth largest cryptocurrency on the market with a market value of over $ 46.19 billion. Investigators are investigating whether the launch should have been registered with the agency.

The article also claims that Binance would be the subject of several investigations in Washington, adding that the SEC is particularly interested in market makers attached to the CEO, Changpeng Zhao (CZ).

“The SEC has expressed interest in Zhao’s holdings in market makers at Binance.US, and whether the stock exchange has operated a brokerage business,” Bloomberg reported, citing a person with knowledge of the issue.

In a statement, Binance allegedly claimed that “it would be inappropriate to comment on our ongoing discussions with regulators, which include training, assistance and voluntary responses to requests for information.”

To make matters worse, a Reuters article accused the cryptocurrency exchange of acting as a channel for laundering at least $ 2.3 billion in illegal funds between 2017 and 2021.

The news agency claimed that Binance had been dealing with transactions stemming from hacks, fraud and the sale of illegal drugs for five years, with Reuters claiming to have worked with the blockchain analysis firms chain analysis and Crystal Blockchain to track funds while reviewing court records and law enforcement statements.

In response, Binance shared the emails exchanged with Reuters reporters, saying the article is “full of untruths” and based on bad data.

“We strongly suggest that you ignore writers and experts who cherry-pick data, rely on conveniently unverifiable ‘leaks’ from regulators, and fuel the cult of paranoia for economic gain,” Binance said.

This is not the first time that Binance and Reuters have been in conflict. In another April article, Reuters claimed that Binance’s head of Russia had agreed to share customer data with Russian authorities, which Binance immediately denied, saying the information was incorrect.

Regarding this latest Reuters article, a Binance spokesman said Cryptonews.com that they were aware of this rather misinformed editorial staff ofAngus Berwickindicating:

“It should be noted that the article uses outdated information from 2019 and unconfirmed personal testimonies as an argument for building a false narrative.”

They further claimed that Binance has “some of the AML policies [anti-blanchiment d’argent] strictest in the fintech industry “, and that it” also helps law enforcement deal with cybercrime and economic crime “.

The spokesman said Binance welcomed the possibility of holding a director responsible, but he had hoped, “that the editors would have hesitated to publish another article by these authors after the information published in their last article was brutally rejected. by several third parties, including one of the key figures in their history, Alexei Navalny’s Chief of Staff “.

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