In the latest US Securities and Exchange Commission (SEC) court filing against Binance, Swiss-registered crypto asset trading company Sigma Chain is coming under scrutiny. The filing alleges that Changpeng Zhao (C.Z.), the CEO of Binance, is the actual owner of Sigma Chain, with several Binance employees operating the company.

The filing also claims that Binance’s back office manager pulls double duty, serving as the president of Sigma Chain and having signature rights to BAM Trading’s bank accounts. Sigma Chain bills itself as an active trader on two Binance platforms, billing itself as a “major market maker for the Binance exchange.”

Following the launch of Binance.US, CZ allegedly instructed Sigma Chain to become one of its initial market makers. Additionally, since the introduction of Over-the-Counter (OTC) and One-Click Buy/Sell (OCBS) services on the Binance.US platform, Sigma Chain has been the counterparty for platform clients, sometimes acting as the sole counterpart.

This development adds to the complexity of the ongoing legal landscape between Binance and the SEC, with potential ramifications for the operation of crypto exchanges and the roles affiliated entities play. It remains to be seen how this case will play out in court.