People who worked for CZ owned two trading firms that helped Binance US make money.
People say that the US Securities and Exchange Commission is looking into Binance’s US branch because of ChangPeng Zhao’s connections to trading firms. Binance has been fighting with regulators all over the world for a long time now.
Binance is being investigated by the SEC in the United States right now.
In a report from the Wall Street Journal, the SEC is looking into how CZ and two trading firms, Sigma Chain AG and Merit Peak, work together and how they make money. This does not mean that the firms or CZ did anything wrong. The investigation, however, does not mean that there is any proof of that.
While little to no information is available about Merit Peak, the Swiss mountain range Sigma Chain is on the other hand.
WSJ sources say that Zhao owned both companies until last year, when Chen Guangying became the president of Sigma Chain, which was owned by both companies. If you look at some of the Binance company’s documents, you’ll see that Guangying has been named as an executive director.
Two trading firms help Binance US make money by setting prices. Market makers, in simple terms, bring more money to crypto exchanges because they usually trade digital assets from crypto exchanges and help keep prices stable.
If Binance.US gives these companies special treatment and tells its customers about its ties to them, then this is the main thing that will be looked into.
It’s important to note that the Commodity Futures Trading Commission (CFTC) investigated Binance last year for possible insider trading and market manipulation. The US arm of Binance hasn’t had as much regulatory scrutiny as its parent company.
Binance’s smart chain is called the BNB chain.
In a separate development, Binance has announced that it is changing the name of its Binance Smart Chain to the BNB Chain. This will help open up more opportunities and give more people more freedom to come up with new ideas.
It says in a press release from the exchange that the new BNB chain will be more decentralised because the number of validators will rise to 41. New ecosystem: It would also be able to run large-scale apps in the SocialFi, GameFi, and Metaverse space on it.
“BNB and its networks Binance Chain and Binance Smart Chain form the new BNB Chain ecosystem built around this outstanding utility token.”
#BNB stands for:
Build the community, aNd let the community Build.
Build'N Build. https://t.co/1QuK5rLxM6
— CZ 🔶 Binance (@cz_binance) February 9, 2021
BNB stands for “Build’N Build,” which means to build the community and let the community build. That’s what CZ said last week.
It was also said that the BNB chain would keep working on the Binance smart chain’s incubation Program, community-driven events and workshops, and other things, as well.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.