SEC investigates Binance.US and trading affiliates owned by Binance CEO CZ

According to the report, the two trading firms, Sigma Chain AG and Merit Peak Lt., are cryptocurrency traders on Binance.US, acting as market makers on the platform. The SEC is concerned about how the American crypto exchange disclosed its links with the two trading firms, per the sources familiar with the matter.

While the Binance.US website states that affiliated market makers can trade on its platform, it does not specify which ones. Meanwhile, the two trading firms have been associated with Binance CEO Changpeng Zhao in past corporate documents.

For instance, Zhao was listed as the chairman of the board of Sigma in a January 2019 document. Since then, he has been replaced by another person connected with Binance.

Binance.US was previously slapped with a subpoena from the SEC in 2020, asking the firm to reveal the controller of the firm, financial statements, public disclosures, as well as its connection with its parent company Binance.

The SEC banned Binance from operating in the country in 2019, which resulted in the crypto exchange forming a US subsidiary to comply with the country’s laws.

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