Does Binance have a relationship with Changpeng Zhao?

The Securities and Exchange Commission (SEC) is investigating the relationship between the US branch of cryptocurrency exchange Binance and two trading firms that have ties to Binance CEO Changpeng Zhao, as reported by The Wall Street Journal.

Is Binance a US company?

The global Binance exchange is not licensed to operate in the United States but the transfers to Merit Peak revealed by Reuters suggest that Binance controlled the finances of Binance.US, despite saying publicly that the American entity is "fully independent" and operates as its "U.S. partner."

Did Binance violate US regulations?

The US Securities and Exchange Commission has filed a total of 13 charges against Binance in US federal court. The core of the SEC’s complaint against Binance and CEO Changpeng Zhao is that the company knowingly skirted US regulations and deceived US investors and regulators about how it was operating its exchange.

Is the SEC concerned about Binance's ties to Binance?

The SEC is particularly concerned with the way Binance discloses its ties to the two trading firms, WSJ reports. On the Binance.US website, the crypto exchange tells users that affiliated market makers can trade on the platform. However, it doesn’t name specific firms.