The U.S. Securities and Exchange Commission (SEC) is investigating the U.S. branch of the world’s largest crypto exchange Binance, as well as two trading companies associated with its founder Changpeng Zhao, The Wall Street Journal reports, citing sources.

The companies in question are Sigma Chain AG and Merit Peak Ltd. which trade cryptocurrency assets and act as market makers for Binance.US, Binance’s U.S. subsidiary. A market maker is a company that assumes the risk of acquiring and holding securities in its accounts. According to 2019 documents, both companies are linked to Binance owner and head Changpeng Zhao, as confirmed by former heads of these companies.

The SEC will look into how the cryptocurrency exchange discloses these companies’ affiliation with Zhao to customers. Sources also reported concerns from Binance.US’s legal and compliance department regarding the origin of Sigma Chain AG and Merit Peak Ltd’s funds.

Binance’s website says that cryptocurrency exchange-affiliated companies may conduct transactions on the trading platform, but the name of these companies is not specified. A spokesperson for Binance.US said the exchange is not required to disclose information about investors and corporate culture, but can hand over this data upon request from regulators.

Binance has faced pressure from financial regulators more than once in 2021. In August, the crypto exchange restricted access to a range of products for residents of South Korea and Malaysia. In July, it warned that it was halting cryptocurrency derivatives trading in Europe. The crypto exchange has also been the subject of investigations in Thailand, Singapore and the Cayman Islands.

Earlier it was reported that the cryptocurrency exchange Binance bought a stake in the American edition of Forbes for $200 million. According to sources, as a result of the deal, Binance will become one of the largest shareholders of the edition.