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SEC connection between Binance US and Sigma Chain AG and Merit Peak Ltd

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Joyashree Dey Follow


Feb, 16 2022

Feb, 16 2022

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The Wall Street Journal published on February 15 that the Securities and Exchange Commission is investigating the connection between the US arm of Binance, the world's biggest cryptocurrency trade, and two exchanging firms with connections to Binance founder Changpeng Zhao.

Sigma Chain AG and Merit Peak Ltd. go about as market producers that exchange cryptocurrencies on the Binance.US trade. One region of the investigation's focus is the way Binance.US uncovered to clients its connections to the exchanging firms, the report said, referring to anonymous sources acquainted with the matter.

Market creators reinforce liquidity and can add stability through continually trading assets. They benefit from the little contrast between the bid and offer cost.

The WSJ report noticed that Binance.US on its site says partnered market creators might exchange on the trade, even though it doesn't publish names of which firms could do as such.

The SEC has brought enforcement actions against exchanging firms that didn't unveil exchanging by associates on their platforms.

The official mentioned data about Sigma Chain and Merit Peak from Binance.US, which is the subject of a current authorization examination, sources told the Journal. The office now and again starts and finishes examinations without making an enforcement move or making claims of misconduct.

Corporate records from 2019 tie Binance author and CEO Changpeng Zhao to Sigma Chain and Merit Peak, and previous executives said that 2021 Zhao controlled the two entities.

The Journal said a representative for Binance.US, Zachary Tindall, declined to remark on the SEC examination and any relationship with the two exchanging organizations. "Binance.US is committed to upholding the highest standards of compliance," he was quoted as saying.

The report said Binance representative Stephen Milton said Binance as a privately owned business doesn't have to reveal subtleties of its investor or corporate design however that data is imparted to controllers when mentioned. Milton told the paper Zhao wasn't accessible for comment.

The Journal has recently revealed that Zhao is the greater part proprietor of Binance and Binance.US.

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Joyashree Dey

CBW - External Analyst


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