BNB price drops 4% on SEC probe news
According to a Bloomberg report, the US Securities and Exchange Commission has opened an investigation into Binance Coin (BNB).
The regulatory watchdog wants to determine whether the most popular exchange token is an unregistered security.
Binance held its initial coin offering (ICO) back in July 2017. The exchange raised a total of $15 million.
According to the report, the investigation has not reached any conclusion yet.
BNB remains the fifth largest cryptocurrency by market capitalization. The coin is trading at $293 after a drop of 4.66% on the news.
In December 2020, the SEC took Ripple to court for allegedly selling illegal XRP.
Last September, the Wall Street Journal reported that the agency had opened an investigation into DeFi kingpin Uniswap.