Binance, the world's largest Bitcoin exchange, is under investigation by the SEC

After being "jointly encircled and investigated" by regulators from various countries in 2021, Binance, the world's largest cryptocurrency exchange, is in trouble again in the new year.

The U.S. Securities and Exchange Commission (SEC) is reviewing the relationship between Binance US and two trading affiliates, The Wall Street Journal reported, citing people familiar with the matter.

The two trading firms, Sigma Chain AG and Merit Peak Ltd, serve as market makers for Binance US and, as of the end of last year, were both controlled by Binance founder and CEO Changpeng Zhao.

Binance US announced on its official website that relevant market makers may trade on the exchange, but did not specify which trading companies may do so.

According to the SEC's request, Binance US Exchange needs to provide specific information about the two trading companies. People familiar with the matter revealed that the SEC is concerned about how Binance US Exchange discloses its connection with the trading companies to customers.

In response, Binance declined to comment and said it has always adhered to the highest level of compliance.

Binance spokesman Stephen Milton said that as a private company, Binance is not required to disclose details of its investors or corporate structure, but this information will be disclosed to regulators when necessary.

Binance has previously been the subject of investigation by U.S. regulators.

In addition, the U.S. Department of Justice and the Internal Revenue Service also investigated the possibility that Binance investors used the exchange for money laundering and tax fraud in 2021.