On November 8th, it was reported that the United States Securities and Exchange Commission (SEC) stated in legal documents that Binance and its CEO CZ operated a securities trading platform in the United States without being registered, violating Section 5 of the Securities Act. The SEC accused Binance of providing and selling BNB tokens to US investors through its employees, and inducing investors to purchase through encrypted cryptocurrency investment projects such as BUSD, which constitutes unregistered investment contract sales. The SEC requested that the court reject Binance's motion, maintain the securities legal system, and impose legal sanctions on the relevant responsible parties. Previously, Binance US and its affiliated organizations requested that the District Court of Washington, D.C. reject the lawsuit filed by the United States Securities and Exchange Commission (SEC), stating that its accusations of money laundering transactions were "unsupported by facts".
In June, the SEC accused Binance US, which is affiliated with Binance Holdings Limited and BAM, of allowing Sigma Chain, a trading company owned by Binance CEO CZ, to conduct money laundering transactions.