SEC denies reports of an investigation into Binance’s BNB token

The U.S. Securities and Exchange Commission (SEC) denied reports of an investigation into Binance’s BNB token. CoinDesk reports this, citing documents provided by the agency.

In June 2022, Bloomberg reported on the investigation, under which the SEC allegedly would determine whether the BNB token was a security at the time of its sale in 2017.

In the same month, Binance CEO Changpeng Zhao said that the regulator had asked the company questions about BNB, but none of the employees received a subpoena.

The SEC said that they do not have information about any investigations into the digital asset. In response to CoinDesk’s inquiry, the agency said:

“Based on the data provided in your letter, we conducted a thorough search in various SEC records systems, but did not find or identify any information that addresses your request.”

This suggests there are no documents obligating the company to submit reports to the regulator, or its employees to appear for questioning.

The SEC may withhold information about ongoing investigations by citing one of the exemptions of the Freedom of Information Act. However, as reporters noted, in such cases the regulator typically uses the wording “we cannot confirm or deny.”

Earlier in February 2022, reports said that the Commission is examining the link between Binance’s U.S. unit and two trading firms affiliated with Zhao.

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