Cailian News | Blockchain Daily, June 7th (Reporter Dong Yujia),On June 7th local time, according to Bloomberg, the US Securities and Exchange Commission (SEC) is conducting an investigation into Coin An to investigate whether selling BNB tokens during its initial token issuance (ICO) in 2017 violated securities rules.According to Bloomberg, citing an insider who declined to be named,SEC investigators are investigating whether the issuance of Coin An BNB tokens is equivalent to selling securities that should have been registered with the SEC
Cailian News | Blockchain Daily, June 7th (Reporter Dong Yujia),On June 7th local time, according to Bloomberg, the US Securities and Exchange Commission (SEC) is conducting an investigation into Coin An to investigate whether selling BNB tokens during its initial token issuance (ICO) in 2017 violated securities rules.
According to Bloomberg, citing an insider who declined to be named,SEC investigators are investigating whether the issuance of Coin An BNB tokens is equivalent to selling securities that should have been registered with the SEC.
The SEC's official website shows that initial token issuance (ICO) may be considered a securities issuance and may fall within the jurisdiction of the SEC's enforcement of federal securities laws.
Former SEC Chairman Jay Clayton once said, 'I believe every ICO I have seen is a security,' and current SEC Chairman Gary Gensler has also publicly endorsed this statement.
BNB is currently the fifth largest cryptocurrency in terms of market value, and was launched through ICO in July 2017. According to a white paper before the launch of BNB by Coin An, the issuance of BNB was limited to 200 million, with 50% of the tokens sold through ICO, 40% reserved for Coin An's founding team, and 10% distributed to angel investors.
According to Bloomberg, at least one US resident claimed to have purchased BNB during the ICO period, and this detail may become a key point for the SEC to assert its jurisdiction over the case.
In a statement to Bloomberg, Coin On stated that "we are not in a position to comment on ongoing conversations with regulatory agencies, including education, assistance, and voluntary responses to information requests," and "will continue to meet all requirements set by regulatory agencies
Regarding whether the operation of Coin Security will be affected by this SEC investigation, Coin Security told Blockchain Daily that as an industry leader, Coin Security is the first to face various doubts from the outside world. We welcome everyone's supervision.
It is worth noting that this is not the first time that Coin An has become the subject of investigation by US regulatory agencies. In addition to the SEC, Coin An is under investigation by the US Department of Justice, the Internal Revenue Service, and the Commodity Futures Trading Commission (CFTC).
The investigations faced by Coin An include the CFTC's investigation into its insider trading and market manipulation, as well as the agency's ongoing investigation into whether Coin An allows US clients to trade derivative products without CFTC supervision; In addition, the exchange also faces allegations from the US Department of Justice and the US Internal Revenue Service regarding its tax and money laundering issues.
Meanwhile, Reuters released a lengthy investigation report yesterday (June 6th) targeting Coin An, stating that Coin An has processed at least $2.35 billion in transactions over the past five years from hacking, investment fraud, and illegal drug sales. At the same time, it was pointed out that the protection measures of Coin Security on KYC (Know Your Customer) and AML (Anti Money Laundering) are weak.
Coin An responded to reporters that the investigation report was "untrue" and stated that the article "made false statements using outdated information from 2019 and unconfirmed personal statements".
We have always been an active participant in the fight against crime. Regarding whether the company has done enough in KYC and AML, Coin An replied to reporters that it is striving to build a comprehensive compliance plan, which includes anti money laundering principles and tools used by financial institutions to monitor and handle suspicious activities.
However, despite regulatory storms in countries such as the United States and the United States, the exchange is still expanding outward and has recently received approval from regulatory authorities in some European countries and the Middle East, including France, Italy, Bahrain, and Dubai.
After the Bloomberg report was released, the price of BNB quickly fell by 5% within an hour. Although there was a brief uplift afterwards, it did not regain the previously lost land. According to the official website of Coin An, as of 17:30 on June 7th, BNB has dropped by 9.09% and its price is currently at $282.1.
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