According to the news of the Wall Street Journal, the US Securities and Exchange Commission (SEC) has launched an investigation against the US branch of Binance.
is trying to determine how Merit Peak Ltd and Sigma Chain AG, two trading companies affiliated with Binance CEO Changpeng Zhao, relate to Binance US. Zhao was the head of both companies in late 2021.
Trading platforms are required to disclose the name of linked market makers that enable them to execute their trades more efficiently. This gives it an unfair advantage over other trading platforms.
Founded in September 2019, Binance US was summoned to court by the SEC in 2020. At the time, the regulator wanted to know if the subsidiary really operated independently of the main exchange.
Last April, a claim was made about Coinbase that there was an affiliated market maker, but this claim was denied by Coinbase.
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