Bitcoin has stabilized above $25,000 after a sharp drop following news that the US Securities and Exchange Commission (SEC) has sued Binance, the world's largest cryptocurrency exchange, and its CEO Changpeng Zhao for allegedly evading US laws.

The SEC claims that Binance secretly controlled Binance.US as part of a "web of deception." Binance's cryptocurrency hit a near three-month low of $277.07 after a 9.2% drop on Monday, and the lawsuit marks the latest development in the SEC's crackdown on the crypto industry.