Bitcoin Price Drops Following Binance Panic and SEC Lawsuit, Traders Look to Recovery
Bitcoin briefly reached $25,800 on June 6th, but remained weak following news of the US Securities and Exchange Commission (SEC) suing Binance and its CEO for securities law violations.
Bitcoin stabilises above $25,000 after U.S. SEC sues Binance
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.
SEC Lawsuit Against Binance Results in $719M Outflows and Declines for SAND and MANA Tokens
On Tuesday, the SEC filed a lawsuit against Binance and its founder for allegedly violating federal securities laws. Nansen.ai data shows that Binance experienced outflows of $719 million across all protocols in a 24-hour period, with net outflows of $230 million during U.S. trading hours.
CZ initiated a Twitter poll asking "Who better protects users, SEC or Binance?"
Binance founder CZ launched a poll on Twitter with the question "Who protects you more?" There were two options: "SEC" and "Binance." As of the time of writing, over 47,000 people participated in the poll, with "Binance" receiving a vote rate of 85%.
Binance Exchange Outflows Remain Minimal Despite Regulation-Focused Market Rout
Despite recent regulatory actions from the SEC, there has not been a significant exodus of funds from Binance, the world's largest crypto exchange.
SEC's Lawsuit Against Binance will not have a Long-term Impact on Token Price
Jeff Dorman, the Chief Investment Officer of Arca, stated in an interview with Bloomberg that the real harm caused by this event was to Coinbase, Kraken, and other US trading platforms, which must decide whether to delist the affected tokens. US market makers have also been affected and may have to stop making markets for certain tokens classified as securities. It is expected that the lawsuit will not have a long-term impact on token prices, as they are still traded on offshore platforms.
SEC Complaint Against Binance May Explain Former CEO Brian Brooks' Abrupt Resignation
The SEC's complaint against Binance may explain why former Binance.US CEO Brian Brooks resigned in August 2021, just three months after taking the position. The complaint cites an unnamed source who briefly ran Binance.US in 2021, which overlaps with Brooks' tenure. Brooks reportedly realized he was not actually running the company and decided to leave. Binance's Chief Communications Officer has pushed back on the speculation, but the news has impacted the prices of cryptocurrencies and publicly-traded crypto companies, with Coinbase potentially facing similar action from the SEC.
Binance's BNB Drops Nearly 10% Following SEC Lawsuit Alleging Illegal Operations in the US
Binance's BNB cryptocurrency experienced a nearly 10% drop following the SEC's lawsuit alleging illegal operations in the US, marking the largest one-day drop this year. The SEC claims that Binance and its founder misused customer funds and conducted manipulative trading to inflate trading volume. Other cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, also saw a decrease in value on Monday. Forbes reported that Binance engaged in backroom asset shuffling and moved $1.8 billion to hedge funds without informing customers that the tokens were not fully backed, similar to actions taken by bankrupt crypto company FTX. Other crypto firms, such as FTX and Coinbase, are also facing allegations from US authorities.
Bitcoin and Cryptocurrencies Experience Sell-Off After SEC Lawsuit Against Binance, Whales Accumulate While Traders Remain Cautious
Bitcoin and other cryptocurrencies saw a significant drop in value after the SEC filed a lawsuit against Binance for unregistered securities operations. This news may cause traders to remain cautious until more clarity emerges. However, data from Glassnode suggests that the largest group of Bitcoin whales have been accumulating over the past few days, which could lead to a recovery. The S&P 500 Index is expected to continue its upward trend, while the US dollar index has rebounded and could potentially start a new up-move. In terms of specific cryptocurrencies, BNB, XRP, ADA, DOGE, SOL, and MATIC are all experiencing varying levels of support and resistance. The author of this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.
SEC's Suit Against Binance Could Be a Huge Misstep If Crypto Replaces Traditional Banking, Says Bianco Research Founder
Jim Bianco, founder of Bianco Research, believes that the SEC's lawsuit against Binance could be a mistake if other countries allow the crypto industry to develop and replace traditional banking. He sees the lawsuit as an attempt by U.S. lawmakers to drive crypto out of the country. However, Aaron Kaplan, co-CEO of Prometheum Inc, believes that the SEC's action signals a shift towards regulated market infrastructure for crypto, which will ultimately benefit U.S. investors and allow innovation to thrive. Meanwhile, some experts welcome the SEC's suit against Binance, citing concerns about the exchange's lack of operational transparency.
