The US SEC has not made any statements about why they are investigating Binance or CZ. However, there are a few possible reasons for the investigation.
One possibility is that the SEC is concerned about Binance’s lack of transparency. Binance is a global exchange with operations in many countries, but it has not registered with the SEC as a securities exchange.
This means that the SEC does not have the same level of oversight over Binance as it does over other U.S.-based exchanges.
Another possibility is that the SEC is concerned about Binance’s compliance with anti-money laundering (AML) regulations.
In recent years, there has been growing concern about the use of cryptocurrency for money laundering and other illegal activities. The SEC may be concerned that Binance is not doing enough to prevent its platform from being used for illegal activity.
It is also possible that the SEC is simply trying to send a message to the cryptocurrency industry. The SEC has been criticized for being slow to regulate the cryptocurrency industry.
The investigation into Binance may be an attempt by the SEC to show that it is serious about regulating the industry and enforcing securities laws.
It is important to note that these are just possible reasons for the investigation. The SEC has not made any public statements about why it is investigating Binance or CZ.
As for whether CZ’s ethnicity is a factor in the investigation, there is no evidence to suggest that it is. The SEC has not made any statements about CZ’s ethnicity, and there is no reason to believe that it is a factor in the investigation.